Return  this  book  on  or  before  the 
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9324-S 


LAWS 

REGULATING  THE  INVESTMENT  OF 

BANK  FUNDS 


A Compilation  of  the  Laws  of  various  States 
in  the  Union  restricting  the  investment 
of  funds  of  the  banks,  trust,  safe  deposit 
companies,  etc.,  and  so  arranged  and 
bound  that  changes  in  the  same  can  be 
inserted  from  time  to  time. 


ELEVENTH  EDITION. 


COMPILED  BY 

MONTGOMERY  ROLLINS 

Also  Author  of 

Convertible  Securities 
Money  and  Investments 
Cipher  Code,  Banker's  Edition 
Tables  of  Bond  Values,  Interest  Payable  Annually 
Tables  of  Bond  Values,  Interest  Payable  Quarterly 
Tables  of  Bond  Values,  Interest  Payable  Semi-Annually 


Published  and  for  sale  by 
MONTGOMERY  ROLLINS 
Boston,  Mass. 


Electrotyping-,  Presswork  and  Binding 
by  The  Southgate  Press,  Boston,  U.S. A. 


Copyright,  1899,  by  Montgomery  Rollins. 
Copyright,  1905,  by  Montgomery  Rollins. 
Copyright,  1909,  by  Montgomery  Rollins. 
All  Rights  Reserved. 


4 


\ 

\ 


1 5 Ta  H* 


NOTICE  TO  SUBSCRIBERS. 


332.1 

J{G5t 


It  is  imperative  that  the  investment 
banker  of  to-day  keeps  in  close  touch 
with  the  laws  governing  the  investments 
of  banks  and  trust  company  funds  in 
the  several  states.  A book  giving  this 
information,  unless  strictly  up  to  date,  is 
practically  of  little  use.  It  has  been  the 
idea,  in  using  detachable  leaves,  to  have 
this  book  correct  at  all  times,  and  every 
effort  is  made  so  to  do,  but,  of  course,  the 
difficulty  in  obtaining  correct  data  from 
officials,  when  asked  for,  makes  it  impos- 
sible to  guarantee  its  infallibility.  A 
r-i list  of  subscribers  is  retained,  and,  after 
a State  makes  any  change  in  its  laws 
relative  to  bank  investments,  it  is  in- 
tended to  forward  to  the  subscribers 
leaves  covering  the  same,  to  replace  the 
old  matter.  A nominal  charge  of  fifty 
prpents  is  made  for  each  new  law,  and 
^the  subscribers  who  do  not  wish  to  receive 
r^such  from  time  to  time  will  kindly 
notify  the  publisher. 

It  will  be  observed  that  this  book  has  a 
side  index,  making  it  possible  to  turn  to 
any  State  quickly,  and  the  law  in  each 
State  is  so  arranged  that  the  desired 
-^Information  can  be  obtained  almost  in- 
^stantly.  The  matter  relating  to  railroad 
bonds  is  printed  in  green ; municipal 
bonds  in  red;  street  railway  bonds  in 
brown  and  all  other  matter  in  black,  mak-  , 
ing  it  necessary  to  read  only  that  portion  / 
of  the  law  which  bears  directly  upon  the, 
subject  sought. 


251071 


c 


;-vj 


Savings  Banks. 


CALIFORNIA. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 

CALIFORNIA. 

Corrected  to  April  21,  1911. 

SAVINGS  BANKS. 

Chap.  76. 

Sec.  34.  No  Bk.  shall  purchase  or  invest 
its  capital  or  money  of  its  depositors,  or 
any  part  of  either,  in  the  shares  of  its  own 
capital  stock ; nor  loan  its  capital  or  the 
money  of  its  depositors,  or  any  'part  of 
either,  on  the  shares  of  its  own  capita^ 
stock,  unless  such  purchase  or  loan  shall  be 
necessary  to  prevent  loss  on  debts  previously 
contracted  in  good  faith. 

Stock  thus  purchased  or  carried  shall, 
within  6 mos.  from  the  time  of  its  pur- 
chase, be  sold  or  disposed  of  at  public  or 
private  sale. 

Sec.  35.  No  director,  or  officer,  or  em- 
ployee, or  controlling  stockholder  of  any 
Bk.  shall,  directly  or  indirectly,  for  himself 
or  as  the  partner  or  agent  of  others,  sell  or 
transfer,  or  cause  to  be  sold  or  transferred 
to  the  Bk.  of  which  he  is  a director,  officer, 
employee,  or  controlling  stockholder,  any 
mtg.  on  real  estate  or  contract  arising  from 
the  sale  of  real  estate  made  by  any  corpora- 
tion or  syndicate  in  which  such  director 
or  officer,  or  employee,  or  controlling  stock- 
holder is  personally  or  financially  interested, 
without  the  consent  in  writing  of  the  Supt. 
of  Bks. 

Sec.  36.  No  Bk.  receiving  deposits  of 
money  shall  purchase,  agree  to  purchase,  un- 
derwrite or  guarantee  any  bond  issue  in  ex- 
cess of  5%  of  its  assets,  except  bonds  of  the 
U.  S.,  of  the  State  of  Cali.,  of  the  cities,  cities 
and  counties,  counties  or  sch.  dists.  of  this 
state. 

Sec.  37.  No  Bk.  shall  purchase,  or  invest 
its  capital  or  money  of  its  depositors,  or 
any  part  of  either,  in  shares  of  corporations, 
unless  such  purchase  shall  be  necessary  to 


l 


CALIFORNIA. 


Savings  Banks. 


prevent  loss  on  debts  previously  contracted 
in  good  faith,  and  stock  thus  purchased  or 
carried  shall,  within  6 mos.  from  the  time 
of  its  purchase,  be  sold  or  disposed  of  at  pub- 
lic or  private  sale,  unless  permission  to  hold 
said  stock  for  a longer  period  shall  be  ob- 
tained from  the  Supt.  of  Bks. 

Sec.  44.  No  Bk.  shall  hereafter  make  a 
loan  secured  by  the  stock  of  another  Bk.,  if 
by  making  such  loan  the  total  stock  of  such 
other  Bk.  held  by  such  loaning  Bk.  as  collat- 
eral will  exceed  in  the  aggregate  10%  of  the 
capital  stock  of  such  other  Bk. ; Provided  that 
no  loan  upon  the  capital  stock  of  any  Bk. 
shall  be  made  unless  such  Bk.  has  been  in 
existence  for  2 or  more  years  and  has  earned 
and  paid  a dividend  upon  its  capital  stock. 

Sec.  46.  No  Bk.  shall  invest  or  loan  more 
than  5%  of  its  assets  in  any  one  bond  is- 
sue, except  bonds  of  the  U.  S.,  of  the  State 
of  Cali.,  of  the  counties,  cities  and  counties, 
cities  or  sch.  dists.  of  this  state. 

Chap.  494. 

Sec.  61.  Sav.  Bks.  may  purchase,  hold  and 
convey  real  estate  and  personal  property  as 
follows : 

1.  The  lot  and  building  in  which  the  busi- 
ness of  the  Bk.  is  carried  on;  such  lot  and 
building  shall  not  cost  the  Sav.  Bk.  an  amount 
exceeding  its  capital  and  surplus ; and  the 
authority  of  a ^rds  vote  of  a full  board  of 
directors  shall  be  necessary  to  authorize  the 
purchase  or  construction  thereof. 

2.  Such  as  may  have  been  mortgaged, 
pledged,  or  conveyed  to  it  in  trust  for  its 
benefit  in  good  faith,  for  money  loaned  in 
pursuance  of  the  regular  business  of  the  cor- 
poration. 

3.  Such  as  may  have  been  purchased  at 
sales  under  pledges,  mortgages  or  deeds  of 
trust  made  for  its  benefit  for  money  so  loaned, 
and  such  as  may  be  conveyed  to  it  by  bor- 
rowers in  satisfaction  and  discharge  of  loans 
made  thereon. 

No  Sav.  Bk.  shall  purchase,  hold,  or  con- 


2 


Savings  Banks. 


CALIFORNIA. 


vey  real  estate  in  any  other  case  or  for  any 
other  purpose;  and  all  real  estate  described 
in  Subdiv.  3 of  this  Sec.  must  be  sold  by  the 
Bk.  within  10  yrs.  after  the  title  thereto  is 
vested  in  it  by  purchase  or  otherwise,  un- 
less permission  to  hold  said  real  estate  for 
a longer  period  be  given  by  the  Supt.  of  Bks. 
in  writing.  Parcels  of  real  estate  not  sold 
within  10  yrs.,  or  extension  of  said  period  as 
above  provided,  may  be  purchased  by  any 
persons  or  parties  wanting  them,  at  the  price 
to  be  determined  by  arbitration  of  3 persons 
appointed  by  the  superior  court  as  apprais- 
ers, at  the  request  of  the  would-be  purchasers. 

No  Sav.  Bk.  shall  purchase,  own,  or  sell 
personal  property,  except  such  as  may  be 
requisite  for  its  immediate  accommodation 
for  the  convenient  transaction  of  its  busi- 
ness, and  mortgages  on  real  estate,  bonds, 
securities  or  evidences  of  debt,  public  0r 
private,  gold  and  silver  bullion  and  U.  S. 
mint  certificates  of  ascertained  value,  an<3 
evidences  of  debt  issued  by  the  U.  S. 

No  Sav.  Bk.  shall  purchase,  hold  or  con- 
vey bonds,  securities  or  evidences  of  debt, 
public  or  private,  except  as  follows: 

(a)  Bonds  or  interest-bearing  notes  or  ob- 
ligations of  the  U.  S.,  or  those  for  which 
the  faith  of  the  U.  S.  is  pledged  for  the 
payment  of  interest  and  principal. 

(b)  Bonds  of  this  state. 

(c)  Bonds  of  any  state  in  the  U.  S.  that 
have  not,  within  5 yrs.  previous  to  making 
such  investment  by  such  Bk.,  defaulted  in  the 
payment  of  any  part  of  either  principal  or 
interest  thereof. 

(d)  Bonds  of  any  city,  county,  city  and 
county,  town,  township,  or  sch.  dist.  of  this 
state ; bonds  of  the  permanent  road  division 
in  any  county  issued  in  pursuance  of  the  pro- 
visions of  part  3,  title  6,  art.  9 of  the  Political 
Code;  bonds  issued  by  irrigation  dists.  which 
are  permitted  to  be  invested  in  as  provided 
for  in  an  act  of  the  39th  session  of  the  Leg. 
entitled  “ An  act  relating  to  the  bonds  of  irri- 
gation dists.,  providing  under  what  circum- 
stances such  bonds  may  become  legal  in- 

3 


CALIFOKNIA. 


Savings  Banks, 


vestments  for  the  funds  of  Bks.,  banking  as- 
sociations, Tr.  Co’s,  Ins.  Co’s,  and  for  the 
state  school  funds,  and  providing  that  such 
bonds  may  be  deposited  as  security,  and  pro- 
viding for  a commission  for  approving  such 
bonds,  for  a report  thereon,  for  the  filing  of 
such  report  and  for  the  registration  of  such 
bonds  in  the  office  of  the  state  controller.” 
Approved  Mar.  9,  1911;  bonds  of  any  sewer 
dist.,  drainage  dist.,  protection  dist.,  or  sani- 
tary dist.,  in  any  county  in  this  state;  pro- 
vided that  the  total  amount  of  bonds  of  any 
sewer  dist.,  drainage  dist.,  protection  dist.,  or 
sanitary  dist.  so  issued  shall  not  exceed  15% 
of  the  taxable  property  of  said  dist.  as  shown 
by  the  last  equalized  assessment  book  of  the 
county. 

(e)  Bonds  of  any  city,  town  or  county 
which  has  in  each  case,  at  the  time  of  the 
investment,  more  than  20,000  inhabitants,  as 
ascertained  by  the  U.  S.  or  state  census  made 
next  preceding  such  investment,  in  any  of 
the  states  of  the  U.  S.,  other  than  in  the  State 
of  Cali.,  issued  pursuant  to  the  authority  of 
any  law  of  such  states ; Provided,  the  entire 
bonded  debt  of  such  city  or  county  or  town 
shall  not  exceed  15%  of  the  assessed  value 
of  the  taxable  property  therein,  including  the 
issue  of  bonds  in  which  said  investment  is 
made  as  shown  by  the  last  assessment  pre- 
ceding the  investment;  and  provided,  further, 
that  such  city,  town  or  county  or  state  in 
which  it  is  situated  has  not  defaulted  in 
the  payment  of  any  part  of  either  principal 
or  interest  thereon  within  5 yrs.  previous  to 
making  such  investment. 

(f)  1st  Mtg.  or  underlying  bonds  of  any 
Steam  Rwy.,  the  income  of  which  is  sufficient 
to  pay  all  operating  expenses  and  fixed 
charges,  and  which  is  completed  and  operated, 
wholly  or  in  part,  in  any  of  the  states  of 
the  U.  S.  (See  also  1st  and  3d  paragraphs 
following.) 

(g)  Bonds  of  street  railroads,*  water, 

* The  remainder  of  this  paragraph  and  the  sec- 
ond one  following,  although  not  in  brown,  very 
largely  also  apply  to  street  railroads. 


4 


Savings  Banks. 


CALIFORNIA. 


light,  light  and  power,  gas,  and  other  public 
utility  and  industrial  corporations.  All  bonds 
authorized  for  investment  by  this  section 
shall  be  secured  by  a Mtg.  or  Tr.  Deed,  which 
is,  at  the  time  of  making  such  investment, 

(1)  a ist  or  underlying  Mtg.  or  Tr.  Deed 
of  the  corporation  issuing  said  bonds,  or 

(2)  a refunding  Mtg.  or  Tr.  Deed  used  to 
retire  all  prior  lien  Mtg.  debts  of  said  cor- 
poration outstanding  at  the  time  of  making 
said  investment ; Provided,  that  the  income 
of  such  corporation  is  sufficient  to  pay  all 
operating  expenses  and  fixed  charges,  includ- 
ing interest  on  all  of  its  Mtg.  debt  and  that 
the  income  of  such  corporation  or  of  the 
corporation  or  corporations  out  of  which  it 
shall  have  been  formed  through  consolidation 
shall  have  been  sufficient  to  pay  its  operating 
expenses  and  fixed  charges  including  inter- 
est on  all  Mtg.  debt  for  a period  of  3 yrs.,  next 
preceding  the  purchase  of  such  refunding 
bonds,  or  that  payments  of  its  said  bonds 
have  been  guaranteed  by  a corporation  that 
has  paid  all  its  operating  expenses  and  fixed 
charges  for  a period  of  3 yrs.,  prior  to  guar- 
anteeing the  payment  of  such  bonds. 

(h)  ist  Mtg.  bonds  or  Deeds  of  Tr.  is- 
sued by  real  estate  corporations : Provided, 
that  said  bond  issue  shall  not  exceed  60% 
of  the  market  value  of  the  real  estate  taken 
as  security. 

No  Sav.  Bk.  shall  purchase  the  bonds  of 
any  corporation  or  make  a loan  on  the  bonds 
of  any  corporation,  if  the  main  or  principal 
franchise  of  such  corporation  expires  prior 
to  the  maturity  of  its  bonds,  or  if  the  main 
or  principal  franchise  or  special  privilege 
granted  to  such  corporation  by  any  city, 
county,  or  city  and  county,  expires  before  the 
maturity  of  such  bond  issue. 

(i)  Collateral  Tr.  bonds  when  secured  by  a 
deposit  of  an  equal  amount  of  bonds  which 
are  authorized  for  investment  by  this  Sec. 
and  a sufficient  amount  of  other  security  so. 
that  the  bonds  shall  represent  not  more  than 
90%  of  the  market  value  of  the  total  security 
pledged  therefor. 


5 


CALIFORNIA. 


Savings  Banks. 


Chap.  76. 

Sec.  62.  No  Sav.  Bk.  shall,  directly  or  in- 
directly, deal  or  trade  in  real  or  personal 
property  in  any  other  case  or  for  any  other 
purpose  than  is  authorized  by  this  act,  and 
shall  not  contract  any  debt  or  liability  for 
any  purpose  whatever  other  than  for  deposits, 
except  as  in  this  sec.  provided. 

Sec.  64.  * * * * but  whenever  there  is  any 
call  by  depositors  for  repayment  of  a greater 
amount  than  the  Bk.  may  have  disposable  for 
that  purpose,  the  directors  or  officers  thereof 
must  not  make  any  new  loans  or  investments 
of  the  funds  of  the  depositors,  or  of  earn- 
ings thereof,  until  such  excess  of  call  has 
ceased.  The  directors  of  any  such  Bk.,  hav- 
ing no  capital  stock,  must  retain,  on  each 
dividend  day,  at  least  10%  of  the  net  profits 
of  the  Bk.,  to  constitute  a reserve  fund, 
which  must  be  invested  in  the  same  manner 
as  other  funds  of  the  Bk.  * * * * 

Sec.  67.  1.  No  Sav.  Bk.  shall  loan  money 
except  on  adequate  security  of  real  or  per- 
sonal property,  and  no  such  loan  shall  be 
made  for  a period  longer  than  10  yrs. ; Pro- 
vided that  no  loans  shall  be  made  on  un- 
secured notes. 

3.  No  Sav.  Bk.  shall  loan  money  to  ex- 
ceed 90%  of  the  market  value  of  bonds  speci- 
fied in  Subdivs.  (a),  (b),  (c)  and  (d)  of 
Subdiv.  3 of  Sec.  61  of  this  Act,  and  no 
more  than  85%  of  the  market  value  of  bonds 
specified  in  Subdiv.  (e)  of  Subdiv.  3 of  Sec. 
61  of  this  Act,  and  no  more  than  75%  of  the 
market  value  of  bonds  specified  in  Subdiv. 
(f)  and  (g)*  of  Subdiv.  3 of  Sec.  61  of  this 
Act,  and  no  more  than  65%  of  the  market 
value  of  personal  property  and  stocks  of 
corporations  or  Bks. ; Provided,  however,  that 
no  loan  shall  be  made  upon  the  capital  stock 
of  any  corporation  or  Bk.  unless  such  cor- 
poration or  Bk.  has  been  in  existence  for  2 
or  more  yrs.,  and  has  earned  and  paid  a 
dividend  on  its  capital  stock. 

4.  No  Sav.  Bk.  shall  make  any  loan  on  the 


* This  includes  street  railways. 


Savings  Banks. 


CALIFORNIA. 


security  of  real  estate  except  it  be  a ist 
lien  and  in  no  event  to  exceed  60%  of  the 
market  value  of  any  piece  of  real  estate  to 
be  taken  as  security,  except  for  the  purpose 
of  facilitating  the  sale  of  property  owned  by 
the  Sav.  Bk. ; Provided,  that  a 2 d lien  may 
be  accepted  to  secure  the  repayment  of  a 
debt  previously  contracted  in  good  faith. 

5.  No  Sav.  Bk.  shall  purchase,  invest  or 
loan  its  capital  or  the  money  of  its  depositors, 
or  any  part  of  either,  in  mining  shares  or 
stock. 

6.  No  Sav.  Bk.  shall  hereafter  make  a loan 
secured  by  the  stock  of  another  Bk.,  if  by 
making  such  loan  the  total  stock  of  such 
other  Bk.  held  by  such  loaning  Bk.  as  collat- 
eral will  exceed  in  the  aggregate  10%  of  the 
capital  stock  of  such  other  Bk. 

Chap.  494 

Sec.  68.  Every  Sav.  Bk.  or  Sav.  Bk.  Dept, 
of  a Bk.  shall  at  all  times  maintain  a lawful 
money  reserve  equivalent  to  4%  of  the  ag- 
gregate amount  of  its  deposits;  of  such 
reserve  shall  be  kept  on  hand  in  lawful 
money  of  the  U.  S.,  and  y2  may  consist  of 
bonds  of  the  U.  S.,  or  of  lawful  money  of 
the  U.  S.  on  hand  or  on  deposit  subject  to 
call  with  any  reserve  Bk.  provided  for  in 
Sec.  20  of  this  Act;  Provided,  however,  that 
no  Sav.  Bk.  or  Dept  shall  be  required  to 
maintain  in  its  own  keeping  a reserve  in  law- 
ful money  of  the  U.  S.  in  excess  of  $400,000, 
and  when  the  reserve  in  its  own  keeping 
reaches  that  amount,  the  balance  of  cash 
necessary  to  make  up  the  4%,  may  be  kept 
on  deposit  subject  to  call  with  any  reserve 
Bk.  provided  for  in  Sec.  20  of  this  Act. 

No  new  loan  shall  be  made  during  any 
deficiency  in  the  lawful  money  reserve. 

Deposits  with  the  Commercial  Bks.,  or 
Commercial  Depts.,  on  open  account,  to  fa- 
cilitate business  transactions,  as  provided  in 
this  Sec.,  shall  be  permitted,  and  shall  not 
be  construed  as  loans. 

Not  more  than  8%  of  the  deposits  of  any 

7 


CALIFORNIA. 


Commercial  Banks. 


Sav.  Bk.  shall  be  deposited  with  any  one  Bk. 

No  Sav.  Bk.  or  Sav.  Dept,  shall  receive 
deposits  of  other  Bks.  other  than  Savs.  de- 
posits and  such  deposits  shall  not  be  treated 
or  considered  as  a part  of  the  legal  reserve 
of  such  depositing  Bk.  and  provided  that  the 
sum  so  deposited  shall  not  exceed  the  sum 
of  $10,000  in  any  one  Bk. 

Chap.  495,  Sec.  33,  and  Chap.  76,  Sec.  47  un- 
der Commercial  Bks.  also  apply  to  Sav.  Bks. 

COMMERCIAL  BANKS. 

Chap.  495. 

Sec.  20.  Every  Bk.,  other  than  a Sav.  Bk., 
shall  have  at  all  times  as  lawrful  reserve  an 
amount  equal  to  15%  of  the  aggregate  amount 
of  its  deposits;  2-5ths  of  such  reserve  shall 
be  in  its  own  keeping  in  lawful  money  of  the 
U.  S. ; of  the  remainder  of  such  lawful 
reserve  may  consist  of  moneys  on  deposit, 
subject  to  call,  with  any  Bk.  or  Bks.  in  this 
state,  other  than  a Sav.  Bk. ; and  the  balance 
of  such  reserve  may  consist  of  moneys  on 
deposit,  subject  to  call,  with  any  Bk.  or  Bks. 
in  the  cities  of  New  York,  Chicago  or  St. 
Louis,  other  than  a Sav.  Bk. ; Provided,  that 
every  Bk.  receiving  deposits  as  a reserve 
depository  Bk.  of  other  Bks.,  shall  maintain 
as  a lawful  reserve  at  least  20%  of  the  ag- 
gregate amount  of  its  deposits;  2-5ths  of 
such  lawful  reserve  of  such  depository  Bk. 
shall  be  in  lawful  money  of  the  U.  S.  in  its 
own  keeping;  *4  of  the  remainder  of  such 
lawful  reserve  of  such  depository  Bk.  may 
consist  of  moneys  on  deposit,  subject  to  call, 
with  any  Bk.  or  Bks.  in  this  state,  other 
than  a Sav.  Bk. ; and  the  balance  of  such 
reserve  may  consist  of  moneys  on  deposit, 
subject  to  call,  with  any  Bk.  or  Bks.  in  the 
cities  of  New  York,  Chicago,  and  St.  Louis, 
other  than  a Sav.  Bk. 

If  the  lawful  money  reserve  of  any  Bk. 
shall  be  less  than  the  amount  required  by 
this  section,  such  Bk.  shall  not  increase  its 
liabilities  by  making  any  new  loans  or  dis- 
counts, otherwise  than  by  discounting  bills 


8 


Commercial  Banks. 


CALIFORNIA. 


of  exchange  on  sight,  or  making  any  divi- 
dends from  profits  until  the  full  amount  of 
its  lawful  money  reserve  has  been  restored. 

Sec.  33.  No  officer  or  employee  of  any 
Bk.  shall,  directly  or  indirectly,  for  himself 
or  as  the  partner  or  agent  of  others,  borrow 
any  of  the  deposits  or  other  funds  of  such 
Bk.,  nor  shall  he  nor  any  director  become  an 
endorser  or  surety  for  loans  to  others,  nor 
in  any  manner  be  obligor  for  moneys  bor- 
rowed or  loaned  by  such  Bks ; except  that 
a Commercial  Bk.  may  buy  from,  or  discount, 
for  a director  of  said  Bk.,  bills  of  lading  and 
bills  of  exchange  drawn  in  good  faith  against 
actually  existing  value  actually  owned  by  the 
director  negotiating  the  same. 

Chap.  76. 

Sec.  47.  No  Bk.  shall  make  any  loan  on 
real  estate  except  it  be  a 1st  lien,  but  this 
provision  shall  not  prevent  the  acceptance  of 
a 2d  lien  to  secure  the  payment  of  a debt 
previously  contracted  in  good  faith. 

Chap.  495. 

Sec.  80.  No  Commercial  Bk.  shall  make 
any  loans  to  any  person,  company,  corpora- 
tion or  firm  to  an  amount  exceeding  i-ioth 
part  of  the  capital  stock  of  such  Bk.  actu- 
ally paid  in  and  surplus,  excepting  that  no 
Commercial  Bk.  shall  be  prohibited  by  this 
act  from  loaning  to  any  person,  company, 
corporation  or  firm  any  sum  not  exceeding 
$5,000  without  security;  Provided,  however, 
that  a Bk.  may  loan  to  any  person,  company, 
corporation  or  firm  a sum  not  exceeding 
25%  of  its  capital  stock  actually  paid  in  and 
surplus  upon  security  worth  at  least  15% 
more  than  the  amount  of  its  loans ; or  it  may 
loan  10%  of  such  capital  and  surplus  as 
first  above  provided,  and  a further  sum  not 
exceeding  15%  of  such  capital  and  surplus 
upon  security  worth  at  least  15%  more  than 
the  amount  of  such  loan  so  secured ; except 
that  a Commercial  Bk.  may  buy  from,  or 
discount,  for  any  person,  company,  corpora- 

9 


CALIFORNIA. 


Commercial  Banks. 


tion  or  firm,  or  loan  upon  bills  of  lading,  and 
bills  of  exchange,  drawn  in  good  faith  against 
actual  existing  value  or  against  commercial 
or  business  paper  actually  owned  by  the  per- 
son negotiating  the  same;  Provided,  however, 
that  at  no  time  shall  the  loans  on  or  pur- 
chases  of  bills  of  lading  or  such  bills  of  ex- 
change, made  to  any  one  person,  company, 
corporation  or  firm  exceed  75%  of  the  capital 
and  surplus  of  such  bank. 

Sec.  81.  No  loan  shall  be  made  by  any 
Commercial  Bk.  upon  the  securities  of  one 
or  more  corporations,  the  payment  of  which 
is  undertaken,  in  whole  or  in  part,  severally, 
but  not  jointly,  by  2 or  more  individuals, 
firms,  or  corporations : 

(a)  If  the  borrowers  or  underwriters  be 
obligated  absolutely  or  contingently  to  pur- 
chase the  securities,  or  any  of  them,  collat- 
eral to  such  loan,  unless  the  borrowers  or 
underwriters  shall  have  paid  on  account  of 
the  purchase  of  such  securities  an  amount  in 
cash,  or  its  equivalent,  equal  to  at  least  25% 
of  the  several  amounts  for  which  they  re- 
main obligated  in  completing  the  purchase 
of  such  securities ; 

(b)  If  the  Commercial  Bk.  making  such 
loan  be  liable,  directly  or  indirectly,  or  con- 
tingently, for  the  repayment  of  such  loan  or 
any  part  thereof; 

(c)  If  its  term,  including  any  renewal 
thereof  by  agreement,  expressed  or  implied, 
exceed  the  period  of  1 yr. ; 

(d)  Or  to  an  amount  under  any  circum- 
stances in  excess  of  25%  of  the  capital  and  sur- 
plus of  the  Commercial  Bk.  making  such  loan. 

Sec.  83.  No  Commercial  Bk.  shall  loan 
any  of  its  funds  to  any  of  its  directors  un- 
less such  loan  shall  first  have  been  approved 
by  a ^rds  vote  of  its  board  of  directors,  on 
which  vote  the  borrowing  director  shall  not  . 

participate,  and  the  fact  of  making  such  ^ 

loan,  the  name  of  the  director  borrowing  the 
same,  the  time  when  the  same  shall  become 
due,  the  rate  of  interest  thereon,  and  the 
amount,  value  and  character  of  security 
pledged  therefor,  if  any,  shall  be  forthwith 


10 


Trust  Companies. 


CALIFORNIA. 


forwarded  by  the  cashier  of  such  Bk.  to  the 
Supt.  of  Bks. ; and  if  the  Supt.  of  Bks.  shall 
disapprove  of  such  loan  he  shall  immediately 
notify  such  Bk.  of  his  disapproval  thereof 
and  such  Bk.  shall  forthwith  collect  such 
loan;  Provided,  however,  that  the  total  loans 
to  all  directors  of  such  Bk.  shall  not  at  any 
one  time  exceed  50%  of  the  capital  and 
surplus  of  such  Bk.,  and  Provided  further, 
that  each  Bk.  having  any  loan  or  loans  out- 
standing to  any  of  its  directors,  shall  once 
each  month  report  in  writing  to  the  Supt. 
of  Bks.  the  name  of  each  director  to  whom 
such  loan  is  made,  and  amount  of  such  loan, 
the  rate  of  interest  thereon,  the  time  when 
the  same  shall  fall  due,  and  the  security 
pledged  therefor,  if  any. 

Sec.  84.  No  Commercial  Bk.  shall  invest 
an  amount  exceeding  its  capital  and  surplus  in 
its  Bk.  premises  without  the  approval  of  the 
Supt.  of  Bks.;  and  the  authority  of  a ^rds 
vote  of  a full  board  of  directors  shall  be 
necessary  to  authorize  the  purchase  or  con- 
struction thereof. 

Chap.  76,  Secs.  34,  35,  36,  37,  44,  and  46 
under  Sav.  Bks.  also  apply  to  Commercial  Bks. 

TRUST  COMPANIES. 

Chap.  495. 

Sec.  96.  Each  Tr.  Co.,  before  accepting 
any  such  appointment  or  deposit,  shall  de- 
posit with  the  treasurer  of  state,  for  the 
benefit  of  the  creditors  of  said  Tr.  Co.,  the 
sum  of  8100,000,  in  bonds  of  the  U.  S.,  or 
municipal  bonds  of  this  state,  or  of  any 
county,  or  city,  city  and  county,  or  sch. 
dist.  thereof,  or  in  Mtgs.  on  improved  and 
productive  real  estate  in  this  state,  being 
1st  liens  thereon,  and  the  real  estate  being 
worth  at  least  twice  the  amount  loaned 
thereon ; said  bonds  or  Mtgs.  to  be  approved 
by  the  Supt.  of  Bks.  The  bonds  and  securi- 
ties so  deposited  may  be  exchanged  from 
time  to  time  for  other  securities,  receivable 
as  aforesaid.  Said  bonds  of  the  U.  S.,  or 
municipal  bonds  of  this  state,  or  of  any 

ll 


CALIFORNIA, 


Trust  Companies. 


county,  city,  city  and  county,  or  sch.  dist. 
thereof,  and  all  said  securities  shall  be  sub- 
ject to  sale  and  transfer,  and  to  the  dis- 
posal of  the  proceeds  by  said  treasurer,  only 
on  the  order  of  a court  of  competent  juris- 
diction and  as  hereinafter  provided. 

Chap.  76. 

Sec.  97.  Any  such  Tr.  Co.,  having  a 
paid-up  capital  in  excess  of  $200,000,  may  be 
permitted  by  the  Supt.  of  Bks.  to  mortgage 
any  improved  and  productive  real  estate 
owned  by  it,  in  excess  of  said  amount,  to 
the  treasurer  of  state,  for  such  sum  as  the 
said  Supt.  of  Bks.  may  determine,  and  such 
Mtg.  may  be  deposited  with  said  treasurer, 
and  when  so  deposited  it  shall  be  included 
in  the  amount  of  securities  hereinabove  re- 
quired to  be  deposited  with  said  treasurer 
for  the  benefit  of  the  creditors  of  said  Tr. 
Co. 

Sec.  98.  * * * * and  whenever  any  Tr. 
Co.  receives  Tr.  Funds  as  such  trustee  in 
excess  of  $500,000,  it  shall  deposit  with  the 
state  treasurer  securities  mentioned  in  Sec. 
96  of  this  act,  to  be  approved  by  the  Supt. 
of  Bks.,  in  the  amount  of  another  $100,000, 
and  for  each  $500,000,  of  such  Tr.  Funds 
thereafter  received,  an  additional  deposit  of 
$50,000,  of  such  securities  likewise  approved 
shall  be  made  with  the  said  state  treasurer; 
Provided,  however,  that  no  Tr.  Co.  shall  be 
required  to  deposit  more  than  $1,000,000  of 
such  securities. 

Sec.  99.  When  any  part  of  such  deposit 
with  the  state  treasurer  is  made  in  bonds  and 
Mtgs.,  it  shall  be  accompanied  by  full  ab- 
stracts of  titles  and  searches,  or  by  certifi- 
cates of  title  issued  by  a person,  company  or 
corporation,  whose  business  or  objects  are 
to  make  searches  of  titles  and  issue  certifi- 
cates of  titles,  and  which  said  person,  com- 
pany or  corporation  shall  be  one  designated 
or  approved  by  said  Supt.  of  Bks.,  and  shall 
be  examined  and  approved  by  or  under  the 
direction  of  the  said  Supt.  of  Bks.  The  fees 
for  an  examination  of  title  by  counsel  to  be 


Trust  Companies. 


CALIFORNIA. 


paid  by  the  Tr.  Co.  making  the  deposit,  shall 
not  exceed  $20.00  for  each  Mtg.,  and  the  fee 
for  each  appraiser,  not  exceeding  2,  besides 
expenses,  shall  be  $5.00  for  each  Mtg. 

Sec.  105.  Every  Tr.  Co.  shall  invest  its 
capital  and  Tr.  Funds  received  by  it  in  ac- 
cordance with  the  laws  relative  to  the  in- 
vestment of  funds  deposited  with  Sav.  Bks., 
unless  a specific  agreement  to  the  contrary  is 
made  between  the  Tr.  Co.  and  the  party 
creating  the  trust. 

The  following  also  applies  to  Tr.  Co’s: 

Chap.  76,  Secs.  34,  35,  36,  37,  44,  and  46  un- 
der Sav.  Bks.,  and  Chap.  495,  Secs.  20  and  33, 
and  Chap.  76,  Sec.  47  under  Commercial  Bks. 


Savings  Banks. 


CONNECTICUT. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green . brown. 

Other  matter  in  black. 

CONNECTICUT 

Corrected  to  Include  1913  Sess.  of  Leg. 

SAVINGS  BANKS.* 

Sec.  1.  Sav.  Bks.  may  invest  their  deposits 
and  surplus  only  as  hereinafter  provided. 

Sec.  2.  In  the  stock  or  bonds  or  interest- 
bearing  notes  or  obligations  of  the  U.  S.,  or 
those  for  which  the  faith  of  the  U.  S.  is  pledg- 
ed to  provide  for  the  payment  of  the  principal 
and  interest,  including  the  bonds  of  the  Dis- 
trict of  Columbia. 

Sec.  3.  In  the  stock  or  bonds  or  interest- 
bearing  obligations  of  any  state  of  the  U.  S. 
which  was  admitted  to  statehood  prior  to  Jan. 
1,  1896,  which  has  not,  within  10  years  previous 
to  making  such  investment  by  such  Corp.,  de- 
faulted for  more  than  90  days  in  the  payment 
of  any  part  of  either  principal  or  interest  of 
any  debt  authorized  by  the  legislature  of  such 
state  to  be  contracted ; and  in  the  bonds  or  in- 
terest-bearing obligations  of  any  such  state  of 
the  U.  S.  which  have  been  issued  and  outstand- 
ing for  a period  of  at  least  10  years  previous  to 
making  such  investment  by  such  Corp.,  and 
which  have  been  issued  in  pursuance  of  the 
authority  of  the  legislature  of  such  state,  (1) 
for  the  funding  or  settlement  of  any  pre- 
vious obligation  of  such  state  theretofore  in 
default,  or  (2)  for  the  refunding  of  such  fund- 
ing or  settlement  obligation  of  such  state 
theretofore  in  default,  and  on  which  said 
funding  or  settlement  obligation  or  obligation 
issued  to  refund  the  same  there  has  been  no 
default  in  the  payment  of  either  principal  or 
interest  since  its  issue,  provided  the  authoriza- 
tion of  any  obligation  by  the  legislature  of  any 
such  state  hereinbefore  referred  to  shall  not 
have  been  in  violation  of  any  constitutional 
provision,  and  provided  such  bond  or  interest- 


*The  term  “savings  banks’’  shall  include  savings 
banks,  societies  for  savings,  and  savings  societies. 

1 


CONNECTICUT. 


Savings  Banks. 


bearing  obligation  shall  be  the  direct  obliga- 
tion of  such  state  and  that  the  faith  and  credit 
of  the  state  shall  be  pledged  for  its  payment, 
principal  and  interest. 

Sec.  4.  In  the  obligations  of  any  county, 
town,  city,  borough,  Sch.  Dist.,  fire  Dist.,  or 
sewer  Dist.,  in  this  state. 

Sec.  5.  In  the  stock  or  bonds  of  any  incor- 
porated city  situated  in  one  of  the  states  of  the 
U.  S.  which  was  admitted  to  statehood  prior  to 
Jan.  1,  1896,  and  which  was  incorporated  as  a 
city,  under  the  same  or  a different  name,  at 
least  25  years  prior  to  making  such  investment, 
and  which  has  not  less  than  20,000  inhabitants, 
as  ascertained  by  the  U.  S.  or  state  census,  or 
any  municipal  census  taken  by  authority  of  the 
state,  next  preceding  such  investment,  provid- 
ed the  amount  of  the  bonds  of  such  city,  in- 
cluding the  issue  in  which  such  investment  is 
made,  and  its  proportion,  based  on  the  valua- 
tions of  property  therein  for  the  assessment 
for  taxation  next  preceding  such  investment, 
of  the  county  and  town  debt,  after  deducting 
the  amount  of  its  water  debt  and  the  amount 
of  the  sinking  funds  which  are  available  for 
payment  of  its  bonds  other  than  water  bonds, 
does  not  exceed  7%  of  the  valuation  of  the 
taxable  property  in  such  city,  to  be  ascertained 
by  the  valuation  of  property  therein  for  the 
assessment  of  taxes,  next  preceding  such  in- 
vestment, and  provided  the  city  issuing  such 
bonds,  or  the  state  in  which  it  is  located,  has 
not  defaulted  for  more  than  90  days  in  the  pay- 
ment of  any  of  its  funded  indebtedness  or  in- 
terest thereon,  within  15  years  next  preceding 
the  purchase  of  such  bonds  by  the  Sav.  Bk. 
The  provisions  of  this  Sec.  shall  not  authorize 
the  investment  of  funds  in  any  “special  assess- 
ment” or  “improvement”  bonds,  or  other 
bonds  or  obligations  which  are  not  the  direct 
obligations  of  the  city  issuing  the  same,  and 
for  which  the  faith  and  credit  of  the  issuing 
city  are  not  pledged.  A city  or  state  shall  be 
considered  to  be  in  default  within  the  mean- 
ing of  this  act  while  any  unpaid  and  overdue 
obligation,  either  principal  or  interest,  shall  he 
outstanding. 


Savings  Banks. 


CONNECTICUT. 


Sec.  6.  In  the  bonds  or  interest-bearing  ob- 
ligations issued  by  a R.  R.  Corp.  organized 
under  the  laws  of  any  of  the  New  Eng.  states, 
and  owning  in  fee  not  less  than  300  miles  of 
R.  R.  located  in  said  states,  and  which  has 
paid  in  dividends  in  cash  an  amount  equal  to 
not  less  than  4%  per  annum  on  its  outstanding 
shares  of  capital  stock  in  each  liscal  year  for 
the  5 years  next  preceding  such  investment,  or 
in  the  bonds  or  interest-bearing  obligations 
issued  by  a R.  R.,  terminal,  depot,  bridge,  tun- 
nel, or  St.  Rwy.  Corp.,  organized  under  the 
laws  of  any  of  the  New  Eng.  states  or  the 
state  of  N.  Y.  assumed  by  a R.  R.  Corp.  or- 
ganized under  the  laws  of  any  of  the  New 
Eng.  states  and  owning  in  fee  not  less  than 
300  miles  of  R.  R.  located  in  said  states 
and  complying  with  all  the  provisions  of 
this  Sec. ; if  any  such  R.  R.  Corp.  shall  be 
leased  to  another  R.  R.  Corp  organized  under 
the  laws  of  any  of  the  New  Eng.  states  and 
owning  in  fee  not  less  than  300  miles  of  R.  R. 
located  in  said  states,  under  a lease  which  pro- 
vides for  the  payment  by  the  lessee  as  rental 
of  an  amount  sufficient  to  pay  dividends  on  the 
capital  stock  of  the  lessor  amounting  in  the 
aggregate  in  each  fiscal  year  of  said  lessor 
Corp.  during  the  term  of  said  lease  to  not  less 
than  4%  on  its  outstanding  shares  of  capital 
stock,  such  lessor  shall  be  regarded  as  having 
paid  its  dividends  within  the  meaning  of  this 
Sec.,  but  in  case  the  lessee  shall  hold  any 
shares  of  the  capital  stock  of  the  lessor  such 
shares  shall  not  be  considered  as  outstanding 
within  the  meaning  of  this  section. 

Sec.  7.  In  the  bonds  or  debentures  actually 
issued  by  a R.  R.  Corp.  incorporated  in  any 
of  the  New  Eng.  states,  at  least  l/2  of  the  R.  R. 
of  which  is  located  in  said  state,  whether  such 
Corp.  is  in  possession  of  and  is  operating  its 
own  R.  R.  or  such  R.  R.  is  leased  to  another 
R.  R.  Corp.  incorporated  in  any  one  of  the 
New  Eng.  states,  provided  such  bonds  or  de- 
bentures shall  be  secured  either  by  a Mtg. 
which  was  at  the  date  thereof,  or  is  at  the 
time  of  making  the  investment,  a 1st  Mtg.  on 
not  less  than  75%  of  the  R.  R.  of  such  Corp. 

3 


CONNECTICUT. 


Savings  Banks. 


owned  in  fee  at  the  date  of  the  Mtg.,  or  by  a 
Refd.  Mtg.  which  provides  for  the  retirement 
of  all  prior  lien  Mtg.  bonds  of  such  R.  R. 
Corp.,  or  by  a Mtg.  which  is  a prior  lien  on 
some  part  of  the  R.  R.  covered  by  a Refd. 
Mtg.  which  provides  for  the  retirement  of  all 
outstanding  prior  lien  bonds,  or  that  if  the 
R.  R.  and  R.  R.  property  of  such  Corp.  are 
unincumbered  by  Mtg.,  such  bonds  or  deben- 
tures shall  be  issued  under  the  authority  of 
one  of  said  states  which  provides  by  law  that 
no  such  R.  R.  Corp.  which  has  issued  bonds 
or  debentures  shall  subsequently  execute  a 
Mtg.  upon  its  road,  equipment,  franchise,  or 
upon  any  of  its  real  or  personal  property, 
without  including  in  and  securing  by  such 
Mtg.  all  bonds  or  debentures  previously  issued 
and  all  pre-existing  debts  and  liabilities,  and 
provided  such  Corp.  has  paid  in  dividends  in 
cash  an  amount  equal  to  not  less  than  4%  per 
annum  on  all  its  outstanding  capital  stock  in 
each  fiscal  year  for  the  5 years  next  preceding 
such  investments.  If  any  such  R.  R.  Co.  shall 
hold  the  R.  R.  of  another  such  R.  R.  Corp. 
under  a lease  which  provides  for  the  pay- 
ment by  the  lessee  as  rental  of  an  amount  suf- 
ficient to  pay  dividends  on  the  capital  stock  of 
the  lessor  amounting  in  the  aggregate  in  each 
fiscal  year  of  said  lessor  during  the  term  of 
said  lease,  to  not  less  than  4%  on  all  its  out- 
standing capital  stock,  such  lessor  shall  be  re- 
garded as  having  paid  its  dividends  within  the 
meaning  of  this  Sec.,  but  in  case  the  lessee 
shall  hold  any  shares  of  the  capital  stock  of 
the  lessor  such  shares  shall  not  be  considered 
as  outstanding  within  the  meaning  of  this  Sec. 

Sec.  8.  No  bonds  or  other  interest-bearing 
obligations  shall  be  made  a legal  investment 
by  Secs.  6 and  7 in  case  the  authorized  issue 
thereof,  with  all  outstanding  prior  debts  of 
the  issuing  or  assuming  Corp.,  including  all 
evidences  of  debt  that  may  legally  be  issued 
under  any  of  its  prior  authorizations  or  under 
any  of  its  assumed  prior  authorizations,  after 
deducting  therefrom,  in  case  of  a Refd.  Mtg., 
the  bonds  reserved  under  the  provisions  of 
said  Mtg.  to  retire  prior  debts  at  maturity, 


1 


Savings  Banks.  CONNECTICUT. 


shall  exceed  3 times  the  outstanding  capital 
stock  of  said  Corp.  at  the  date  of  such  in- 
vestment. 

Sec.  9.  In  the  bonds  issued  by  a R.  R.,  ter- 
minal, depot,  bridge,  tunnel,  or  St.  Rwy.  Corp. 
organized  under  the  laws  of  any  of  the  New 
Eng.  states  or  the  state  of  N.  Y.,  the  property 
of  which  is  located  wholly  or  in  part  in  one  of 
said  states,  or  in  the  bonds  issued  by  a R.  R., 
terminal,  depot,  bridge,  tunnel,  or  St.  Rwy. 
Corp.,  organized  under  the  laws  of  any  of  said 
states,  assumed  by  a R.  R.,  terminal,  depot, 
bridge,  tunnel,  or  Sc  Rwy.  Corp.  organized 
under  the  laws  of  said  states,  provided  such 
bonds  shall  be  secured  either  by  a Mtg.  which 
was  at  the  date  thereof,  or  is  at  the  time 
of  making  the  investment,  a 1st  Mtg.  on 
not  less  than  75%  of  the  R.  R.  owned  in 
fee  at  the  date  of  the  Mtg.,  in  the  case  of  a 
R.  R.  or  Si.  Rwy.  Corp.,  or  the  fixed  property, 
in  the  case  of  a terminal,  depot,  bridge,  or  tun- 
nel Corp.,  owned  by  the  Corp.  issuing  the 
bonds,  or  by  a Refd.  Mtg.  which  provides  for 
the  retirement  of  all  prior  lien  bonds  of  such 
Corp.,  or  by  a Mtg.  which  is  a prior  lien  on 
some  part  of  the  property  covered  by  a Refd. 
Mtg.  which  provides  for  the  retirement  of  all 
outstanding  prior  lien  bonds.  No  bond  shall 
be  made  a legal  investment  under  this  Sec. 
unless  the  bonds  are  guaranteed  principal  and 
interest  by  endorsement  by,  or  guaranteed 
principal  and  interest  by  endorsement  which 
guaranty  has  been  assumed  by  a R.  R.  Corp., 
owning  in  fee  not  less  than  300  miles  of  R.  R. 
in  the  New  Eng.  states,  whose  bonds  are  made 
a legal  investment  under  Sec.  6.  No  bonds 
shall  be  made  a legal  investment  by  this  Sec. 
in  case  the  Mtg.  securing  the  bonds  shall  au- 
thorize a total  issue  of  bonds  which  added  to 
the  total  debt,  described  in  Sec.  8,  of  the  guar- 
anteeing Corp.,  including  therein  the  author- 
ized amount  of  all  previously  guaranteed  bond 
issues,  shall  exceed  3 times  the  outstanding 
capital  stock  of  said  guaranteeing  Corp.  at  the 
time  of  making  said  investment. 

^ Sec.  10.  In  the  Mtg.  bonds,  as  described  in 
Sec.  15,  issued  or  assumed  by  any  R.  R.  Corp. 

5 


CONNECTICUT. 


Savings  Banks. 


incorporated  under  the  laws  of  the  U.  S.,  or 
any  state,  provided  such  R.  R.  Corp.  owned  in 
fee  during  each  of  the  5 fiscal  years  of  such 
R.  R.  Corp.  next  preceding  the  date  of  such 
investment  not  less  than  500  miles  of  standard 
gauge  R.  R.,  exclusive  of  sidings,  within  the 
U.  S.,  and  provided  such  R.  R.  Corp.  has  com- 
plied during  each  of  said  fiscal  years  with  the 
provisions  of  Sec.  14,  or  if  such  Corp.  owned 
in  fee  less  than  500  miles  of  such  R.  R.,  the 
gross  earnings  of  such  Corp.,  as  reckoned  in 
Sec.  14,  shall  have  been  not  less  than  $10,000,000. 

Sec.  11.  In  the  Mtg.  bonds,  as  described  in 
Sec.  15,  issued  or  assumed  by  any  R.  R.  Corp. 
incorporated  under  the  laws  of  the  U.  ST,  or 
any  state  thereof,  provided  during  each  of  the 
5 fiscal  years  of  such  R.  R.  Corp.  next  preced- 
ing the  date  of  such  investment,  its  R.  R.  sub- 
jected to  the  lien  of  the  Mtg.  securing  its 
bonds  has  been  operated  by  a Corp.  described 
in,  and  which  has  complied  with  all  the  provi- 
sions of,  Secs.  10  and  14.  No  bonds  shall  be 
made  a legal  investment  by  this  Sec.  unless  the 
bonds  are  guaranteed  principal  and  interest  by 
endorsement  by,  or  guaranteed  principal  and 
interest  by  endorsement  which  guaranty  has 
been  assumed  by,  the  Corp.  operating  the  R.  R. 
covered  by  the  Mtg.  securing  the  bonds  and 
which  has  complied  with  all  the  provisions  of 
Secs.  10  and  14. 

Sec.  12.  In  the  Mtg.  bonds  as  described  in 
this  act  issued  or  assumed  by  any  terminal, 
depot,  bridge,  or  tunnel  Co.,  incorporated  un- 
der the  laws  of  the  U.  S.,  or  any  state,  pro- 
vided the  property  of  such  terminal,  depot, 
bridge,  or  tunnel  Co.  is  used  by  1 or  more  R. 
R.  Corps,  described  in,  and  which  have  com- 
plied with  all  the  provisions  of,  Secs.  10  and 
14.  No  bond  shall  be  made  a legal  investment 
by  this  Sec.  unless  the  bond  is  guaranteed 
principal  and  interest  by  endorsement  by,  or 
guaranteed  principal  and  interest  by  endorse- 
ment which  guaranty  has  been  assumed  by,  1 
or  more  R.  R.  Corps,  described  in,  and  which 
has  complied  with  all  the  provisions  of,  Secs. 
10  and  14. 

Sec.  13.  In  the  Mtg.  bonds  as  described  in 
6 


Savings  Banks. 


CONNECTICUT. 


Sec.  15  issued  or  assumed  by  any  R.  R.  Corp. 
incorporated  under  the  laws  of  the  U.  S.,  or 
any  state,  provided,  during  each  of  the  5 fiscal 
years  of  such  R.  R.  Corp.  next  preceding  the 
date  of  such  investment,  such  R.  R.  Corp. 
owned  in  fee  not  less  than  100  miles  of  stand- 
ard gauge  R.  R.,  exclusive  of  sidings,  within 
the  U.  S.,  and  provided  such  R.  R.  Corp.  has 
complied  during  each  of  said  fiscal  years  with 
the  provisions  of  Sec.  14.  No  bonds  shall  be 
made  a legal  investment  by  this  Sec.  unless  the 
bonds  are  guaranteed  principal  and  interest  by 
endorsement  by,  or  guaranteed  principal  and 
interest  by  endorsement  which  guaranty  has 
been  assumed  by,  a Corp,  described  in,  and 
which  has  complied  with  all  the  provisions  of, 
Secs.  10  and  14,  nor  unless  it  complies  with  the 
provisions  of  Sec.  16. 

Sec.  14.  Any  R.  R.  Corp  described  in  Secs. 
to  and  13  shall  comply  with  the  provisions  of 
this  Sec.  during  each  of  the  5 fiscal  years  of 
such  R.  R.  Corp.  next  preceding  the  date  of 
such  investment,  before  any  of  its  Mtg.  bonds, 
as  described  in  Sec.  15  shall  be  made  a legal 
investment.  Such  R.  R.  Corp.  shall  have  paid 
the  matured  principal  and  interest  of  all  in- 
debtedness and  shall  have  paid  in  dividends  in 
cash  to  its  stockholders  an  amount  equal  to  at 
least  4%  upon  all  its  outstanding  capital  stock; 
the  gross  earnings  from  the  operation  of  the 
property  of  such  R.  R.  Corp.,  including  therein 
the  gross  earnings  of  all  R.  R.s.  leased  and 
operated  or  controlled  and  operated  by  said 
Corp.,  and  the  gross  earnings  from  the  sale  of 
coal  from  mines  owned  or  controlled  by  it, 
shall  not  have  been  less  in  amount  than  5 
times  the  amount  necessary  to  pay  the  interest 
payable  upon  its  entire  outstanding  indebted- 
ness, the  rentals  of  all  leased  lines,  and  the  in- 
terest on  all  outstanding  indebtedness  of  R.  Rs. 
controlled  and  operated  which  are  not  owned 
by  said  Corp.,  after  deducting  from  said  inter- 
est and  rentals  interest  and  dividends  received 
from  the  stocks,  bonds,  or  notes  of  R.R.  Corps, 
not  operated  by  said  Corp.,  which  have  been 
deposited  with  a trustee  as  the  only  security 
for  the  payment  of  bonds  or  notes  issued  by 

7 


CONNECTICUT, 


Savings  Banks. 


said  Corp.,  but  not  in  excess  of  the  interest  on 
said  last  named  bonds  or  notes. 

Sec.  15.  Whenever  the  term  “mortgage 
bonds”  is  used  in  Secs.  10  to  20,  inclusive,  it 
shall  mean  either  (1)  That  the  Mtg.  securing 
the  bonds  was  at  the  date  thereof,  or  is  at  the 
date  of  such  investment,  a 1st  Mtg.  on  not  less 
than  75%  of  the  R.  R.,  in  the  case  of  a R.  R. 
Corp.,  or  the  fixed  property,  in  the  case  of  a 
terminal,  depot,  bridge,  or  tunnel  Co.,  owned 
in  fee  at  the  date  of  the  Mtg.  by  the  Corp. 
which  executed  the  Mtg.  and  issued  the  bonds ; 
that  75%  of  the  R.  R.  subject  to  the  lien  of 
said  Mtg.  is  connected;  that  the  date  of  said 
Mtg.  is  at  least  5 years  prior  to  the  date  of 
such  investment;  unless  the  Corp.  issuing,  as- 
suming, or  guaranteeing  the  bond  has  complied 
with  Sec.  14  for  each  of  the  10  fiscal  years  of 
such  Corp.  next  preceding  the.  date  of  such 
investment;  but  a Mtg.  given  in  substitution 
for  and  not  greater  in  amount  than  such  Mtg., 
and  covering  the  same  R.  R.  or  property,  shall 
be  considered  to  be  in  accordance  with  this  re- 
quirement; (2)  that  if  the  Mtg.  securing  the 
bonds  was  at  the  date  thereof,  or  is  at  the  date 
of  such  investment,  not  a 1st  Mtg.  on  not  less 
than  75%  of  the  railroad  owned  in  fee  at  the 
date  of  the  Mtg.,  it  is  a 1st  Mtg.  on  at  least 
75%  of  the  R.  R.  subject  to  the  lien  of  said 
Mtg.  at  the  date  thereof ; but  if  any  stocks  or 
bonds  are  deposited  with  the  trustee  of  said 
Mtg.  as  part  security  therefor,  representing  or 
covering  R.  R.  mileage  not  owned  in  fee,  the 
bonds  secured  by  said  Mtg.  shall  not  become 
legal  investments  unless  said  Corp.  owns  in 
fee  at  least  75%  of  the  total  mileage  which  is 
subject  to  the  lien  of  such  Mtg.,  including  the 
mileage  which  is  represented  or  covered  by 
said  stocks  or  bonds;  that  75%  of  the  R.  R. 
subject  to  the  lien  of  said  Mtg.  is  connected; 
that  the  date  of  said  Mtg.  is  at  least  5 years 
prior  to  the  date  of  such  investment;  unless 
the  Corp.  issuing,  assuming,  or  guaranteeing 
the  bond  has  complied  with  Sec.  14  for  each 
of  the  10  fiscal  years  of  such  Corp.  next  pre- 
ceding the  date  of  such  investment;  but  a 
Mtg.  given  in  substitution  for  and  not  greater 

3 


Savings  Banks, 


CONNECTICUT. 


in  amount  than  such  Mtg.,  covering  the  same 
R.  R.  or  property,  shall  be  considered  to  be  in 
accordance  with  this  requirement;  (3)  that 
the  Mtg.  securing  the  bonds  was  at  the  date 
thereof,  or  is  at  the  date  of  such  investment, 
a 1st  Mtg.,  or  a Mtg.  or  trust  indenture  which 
is  in  effect  a 1st  Mtg.  upon  all  the  R.  R.,  sub- 
ject to  the  lien  of  said  Mtg.  or  trust  indenture 
by  virtue  of  the  irrevocable  pledge  with  the 
trustee  thereof  of  an  entire  issue  or  issues  of 
bonds  which  are  a first  lien,  upon  the  R.  R.  of 
a R.  R.  Corp.  which  is  owned  and  operated, 
controlled  and  operated,  or  leased  and  oper- 
ated by  the  Corp.  issuing  or  assuming  said 
bonds;  that  75%  of  the  R.  R.  subject  to  the 
lien  of  said  Mtg.  is  connected;  that  the  date 
of  said  Mtg.  is  at  least  5 years  prior  to  the 
date  of  such  investment,  unless  the  Corp. 
issuing,  assuming,  or  guaranteeing  the  bonds 
has  complied  with  Sec.  14  for  each  of  the  10 
fiscal  years  of  such  Corp.  next  preceding  the 
date  of  such  investment;  but  a Mtg.  given  in 
substitution  for  and  not  greater  in  amount 
than  such  Mtg.,  and  covering  the  same  R.  R. 
property,  shall  be  considered  to  be  in  accord- 
ance with  this  requirement;  (4)  that  the  Mtg. 
securing  the  bonds  was  at  the  date  thereof, 
or  is  at  the  date  of  such  investment,  a Refd. 
Mtg.  which  provides  for  the  retirement  of  all 
prior  lien  Mtg.  bonds  of  said  Corp.  outstand- 
ing at  the  time  of  said  investment,  and  cover- 
ing at  least  75%  of  the  R.  R.  owned  in  fee  by 
said  Co.  at  the  date  of  said  Mtg.  No  Mtg.  is 
to  be  regarded  as  a Refd.  Mtg.  under  the  pro- 
visions of  this  Sec.  unless  the  bonds  which  it 
secures  mature  at  a later  date  than  any  bond 
which  it  is  given  to  refund,  or,  in  case  bonds 
are  issued  to  mature  at  an  earlier  date  than 
any  bond  which  it  is  given  to  refund,  the  Mtg. 
contains  the  provisions  that  bonds  issued  to 
mature  at  an  earlier  date  may  be  retired  by  a 
like  amount  of  bonds  reissued  under  said 
Mtg. ; (5)  that  the  Mtg.  securing  the  bonds  is 
a prior  lien  to  a Refd.  Mtg.  described  above, 
on  some  part  of  the  R.  R.  or  R.  R.  property 
covered  by  said  Refd.  Mtg.,  provided  the 
bonds  issued  under  such  Mtg.  are  to  be  re- 

9 


CONNECTICUT.  Savings  Banks. 

funded  by  said  Refd.  Mtg.,  and  the  property 
covered  by  said  prior  lien  Mtg.  is  operated  by, 
and  its  operations  included  in,  those  of  the 
R.  R.  Corp.  issuing  said  refunding  mortgage. 

Sec.  16.  No  bond  shall  be  made  a legal  in- 
vestment by  Sec.  io  in  case  the  Mtg.  securing 
the  same  shall  authorize  a total  issue  of  bonds, 
which,  with  all  outstanding  prior  debts  of  the 
issuing  or  assuming  Corp.,  including  all  bonds 
not  issued  that  may  legally  be  issued  under 
any  of  its  prior  debts,  or  of  its  assumed  prior 
debts,  after  deducting  therefrom  in  case  of  a 
Refd.  Mtg.,  the  bonds  reserved  under  the  pro- 
visions of  said  Mtg.  to  retire  prior  debts  at 
maturity,  shall  exceed  3 times  the  outstanding 
capital  stock  of  said  Corp.  at  the  date  of  such 
investment.  No  bond  shall  be  made  a legal 
investment  by  Secs.  11,  12,  and  13  in  case  the 
Mtg.  securing  the  same  shall  authorize  a total 
issue  of  bonds,  which  added  to  the  total  debt, 
as  defined  in  this  Sec.,  of  the  guaranteeing 
Corp.,  including  therein  the  authorized  amount 
of  all  previously  guaranteed  bond  issues,  shall 
exceed  3 times  the  capital  stock  of  said  guar- 
anteeing Corp.  outstanding  at  the  time  of 
making  said  investment.  In  case  of  a Mtg. 
executed  prior  to  the  passage  of  this  act,  un- 
der which  the  total  amount  of  bonds  which 
may  be  issued  is  not  specifically  stated,  the 
amount  of  bonds  outstanding  thereunder  at 
the  date  of  such  investment  shall  be  consid- 
ered as  the  total  authorized  issue. 

Sec.  17.  Bonds  which  have  been  or  shall 
become  legal  investments  under  any  of  the 
provisions  of  Secs.  10  to  20,  inclusive,  shall 
not  be  rendered  illegal,  although  the  Corp. 
issuing,  assuming,  or  guaranteeing  such  bonds, 
shall  fail  for  a period  not  exceeding  2 suc- 
cessive fiscal  years  to  comply  with  the  require- 
ments of  Secs.  10  and  14,  but  no  further  in- 
vestment in  the  bonds  issued,  assumed,  or 
guaranteed  by  said  Corp.  shall  be  made  after 
the  first  fiscal  year  of  such  failure;  but  if, 
after  the  expiration  of  said  period,  said  Corp. 
complies  for  the  following  fiscal  year  with  all 
the  requirements  of  Secs.  10  and  14  it  shall  be 
regarded  as  having  complied  therewith  during 


10 


Savings  Banks. 


CONNECTICUT. 


said  period,  and  thereupon  said  bonds  shall  be 
legal  investments,  but  in  case  of  any  subse- 
quent failure  to  comply  with  said  Secs,  io  and 
14  the  bonds  of  said  Corp.  shall  not  be  pur- 
chased until  said  Corp  shall  have  complied 
each  year  for  5 successive  years  with  said 
Secs.  10  and  14. 

Sec.  18.  Bonds  which  have  been  or  shall 
become  legal  investments  under  any  of  the 
provisions  of  Secs.  10  to  20,  inclusive,  shall  not 
be  rendered  illegal,  because  the  property  upon 
which  they  are  secured  has  been  or  shall  be 
conveyed  to  or  legally  acquired  by  another 
R.  R.  Corp.,  and  the  Corp.  which  issued  or 
assumed  said  bonds  has  been  or  shall  be  con- 
solidated with  another  R.  R.  Corp.,  if  the  con- 
solidated or  purchasing  Corp.  shall  assume  the 
payment  of  said  bonds  and  so  long  as  it  shall 
continue  to  pay  regularly  interest,  or  divi- 
dends, or  both,  upon  the  securities  issued 
against,  in  exchange  for,  or  to  acquire  the 
stock  of  the  Corp.  consolidated,  or  the  prop- 
erty purchased,  or  upon  securities  subsequent- 
ly issued  in  exchange  or  substitution  therefor, 
to  an  amount  at  least  equal  to  4%  per  annum 
upon  the  capital  stock  outstanding  at  the  time 
of  such  consolidation  or  purchase,  of  said 
Corp.  which  issued  or  assumed  said  bonds. 

Sec.  19.  If  a R.  R.  Corp.  which  has  com- 
plied with  all  the  requirements  of  Secs.  10  and 
14  except  that  the  period  of  compliance  is 
less  than  5 years,  shall  be,  or  shall  have  been, 
consolidated  or  merged  with,  or  its  R.  R.  pur- 
chased and  all  the  debts  of  such  Corp.  as- 
sumed by,  another  R.  R.  Corp.  incorporated 
under  the  laws  of  the  U.  S.,  or  any  state,  the 
Corp.  so  succeeding  shall  be  considered  as 
having  complied  with  all  the  provisions  of  said 
Secs,  during  those  successive  years  next  pre- 
ceding the  date  of  such  consolidation,  merger, 
or  purchase  in  which  said  consolidated,  merged, 
or  purchased  Corps.,  if  considered  as  one  con- 
tinuous Corp.  in  ownership  and  possession 
would,  taken  together,  have  so  complied,  pro- 
vided in  the  case  of  a R.  R.  Corp.  which  has 
complied  with  all  the  requirements  of  said 
Secs.,  except  that  the  period  of  compliance  is 


CONNECTICUT. 


Savings  Banks. 


less  than  5 years,  said  succeeding  Corp.  shall 
continue  so  to  comply  for  a further  period 
which  shall  make  such  compliance  equivalent 
to  at  least  5 successive  years. 

Sec.  20.  If,  by  means  of  consolidation,  merg- 
er, or  purchase,  a R.  R.  Corp.  shall  own  and 
possess  the  properties  and  franchises  which, 
prior  thereto,  belonged  to  similar  Corps.,  and, 
during  the  years  next  preceding  such  con- 
solidation, merger,  or  purchase,  one  or  more 
of  said  Corps.,  have  regularly  paid  in  cash  to 
stockholders  dividends  in  amounts  equaling  or 
exceeding  4%  per  annum  upon  the  entire  cap- 
ital stock  of  the  successor  Corp.  outstanding 
at  the  time  of  the  investment,  such  successor 
Corp.  shall  be  considered  as  having  paid  such 
dividends  during  the  same  period  of  years. 

Sec.  21.  Sav.  Bks.  may  invest  not  exceeding 
2%  of  their  deposits  and  surplus  in  equipment 
trust  notes,  bonds,  or  certificates  issued  by,  or 
which  are  guaranteed  by  endorsement  both  as 
to  principal  and  interest  by,  or  which  are  se- 
cured by  lease  of  equipment  to,  a R.  R.  Corp. 
which,  in  case  of  a R.  R.  Corp.  incorporated 
under  the  laws  of  any  of  the  New  Eng.  states, 
has  complied  with  Sec.  6,  or  which,  in  the  case 
of  a R.  R.  Corp.  incorporated  under  the  laws 
of  any  other  state,  or  of  the  U.  S.,  has  com- 
plied with  all  the  provisions  of  Secs.  10  and 
14,  provided  said  notes,  bonds,  or  certificates 
are  secured  by  a 1st  lien  on,  or  by  a lease  and 
conditional  sale  of,  new  standard  R.  R.  equip- 
ment free  from  other  encumbrances,  for  the 
purchase  of  which  said  notes,  bonds,  or  cer- 
tificates were  issued  at  not  exceeding  90%  of 
the  purchase  price  thereof,  and  provided  the 
instrument  under  which  such  notes,  bonds,  or 
certificates  are  issued,  or  the  lease  of  such 
equipment  to  the  R.  R.  Corp.,  provides  for 
the  proper  maintenance  of  the  equipment  cov- 
ered thereby  and  for  the  payment  of  the  en- 
tire issue  of  such  notes,  bonds,  or  certificates 
in  not  exceeding  15  annual  or  30  semi-annual 
instalments,  without  the  release  of  any  part  of 
the  lien  or  interest  in  any  of  the  equipment 
securing  such  notes,  bonds,  or  certificates  un- 
til the  entire  issue  of  such  series  of  notes, 


Savings  Banks. 


CONNECTICUT. 


bonds,  or  certificates  shall  have  been  paid  or 
redeemed.  No  equipment  trust  notes,  bonds, 
or  certificates  shall  be  made  a legal  investment 
by  this  Sec.  in  case  the  series  authorizes  an 
amount  which,  added  to  the  total  debt  as  de- 
fined in  Sec.  8 in  the  case  of  a R.  R.  Corp. 
organized  under  the  laws  of  any  of  the  New 
Eng.  states,  or  Sec.  1 6 in  the  case  of  a R.  R. 
Corp.  organized  under  the  laws  of  any  other 
state  or  of  the  U.  S.,  which  issued  or  guaran- 
teed or  is  the  lessee  of  the  equipment  securing 
such  equipment  trust  notes,  bonds,  or  certifi- 
cates, including  therein  the  outstanding 
amounts  of  all  previously  issued  series  of  such 
equipment  trusty  notes,  bonds,  or  certificates, 
shall  exceed  3 times  the  capital  stock  of  such 
R.  R.  Corp.  outstanding  at  the  time  of  making 
said  investment. 

Sec.  22.  Sav.  Bks,  may  invest  not  exceeding 
2%  of  their  deposits  and  surplus  in  bonds  is- 
sued by  any  St.  Rwy.  Corp.  incorporated  in 
this  state,  the  Rwy.  of  which  is  located  wholly 
or  in  part  therein,  provided  such  bonds  are 
secured  by  a Mtg.  which  was  at  the  date  of  the 
Mtg.  or  is  at  the  date  of  the  investment  a 1st 
Mtg.  on  not  less  than  75%  of  the  Rwy.  of  such 
Corp.  owned  in  fee  at  the  date  of  the  Mtg., 
and  provided  the  gross  earnings  of  said  Corp. 
each  fiscal  year  for  the  5 years  next  preceding 
the  date  of  such  investment,  were  not  less  than 
$100,000.,  and  that  said  Corp.  in  each  of  said 
years  earned  and  paid  in  dividends  in  cash  an 
amount  equal  to  at  least  4%  per  annum  upon 
the  outstanding  capital  stock,  and  provided,  at 
the  date  of  any  such  dividend,  the  outstanding 
capital  stock  is  equal  to  at  least  Vz  of  the  debt 
of  such  corporation. 

Sec.  23.  Sav.  Bks.  may  invest  not  exceeding 
2%  of  their  deposits  and  surplus  in  Mtg.  bonds 
and  other  interest-bearing  obligations  of  any 
water  Co.  supplying  water  for  domestic  use  to 
communities  in  this  state  having  a population 
of  not  less  than  50,000  whose  franchise  is  an 
exclusive  one  and  unlimited  in  time,  provided 
the  amount  of  all  the  outstanding  debts  of 
such  Co.  does  not  exceed  its  capital  stock,  and 
provided  such  water  Co.  has  earned  each  year 

13 


CONNECTICUT. 


Savings  Banks. 


and  paid  in  cash  from  its  officially  reported 
net  earnings,  as  shown  by  its  annual  report  or 
other  sworn  official  statement,  to  municipal, 
state,  or  U.  S.  authorities,  dividends  of  not 
less  than  4%  per  annum  on  its  entire  outstand- 
ing capital  stock,  for  a period  of  4 years  next 
preceding  the  making  of  the  investment. 

Sec.  24.  Sav.  Bks.  may  invest  not  exceeding 
2%  of  their  deposits  and  surplus  in  bonds  of 
any  telephone  Co.  incorporated  in  this  state, 
whose  property  is  located  chiefly  in  this  state, 
which  are  secured  by  a 1st  Mtg.  upon  at  least 
75%  of  the  property  of  such  Co.,  including  its 
franchises,  rights,  and  privileges,  and  limiting 
the  amount  of  bonds  issuable  thereunder  to 
75%  of  the  valuation  of  the  property  mort- 
gaged, excluding  any  valuation  of  said  fran- 
chises, rights,  and  privileges,  and  providing  the 
gross  income  of  such  telephone  Co.  shall  have 
been  not  less  than  $2,000,000.  per  annum  dur- 
ing each  of  the  5 fiscal  years  of  such  telephone 
Co.  next  preceding  the  date  of  such  investment. 

Sec.  25.  Sav.  Bks.  may  invest  not  exceeding 
2%  of  their  deposits  and  surplus  in  bonds  of 
any  telephone  Co.  incorporated  in  any  of  the 
New  Eng.  states,  or  in  the  state  of  N.  Y.,  and 
secured  by  a 1st  Mtg.  upon  at  least  75%  of 
the  property  of  such  telephone  Co.,  or  by  the 
deposit  with  a Tr.  Co.  incorporated  under  the 
laws  of  one  of  the  New  Eng.  states  or  of  the 
state  of  N.  Y.  of  bonds  and  shares  of  stock  of 
other  telephone  Corps,  under  an  indenture  of 
trust  which  limits  the  amount  of  bonds  so 
secured  to  75%  of  the  value  of  the  securities 
deposited  as  stated  and  determined  in  said  in- 
denture, and  provided  the  gross  income  of 
such  telephone  Co.  shall  have  been  not  less 
than  $25,000,000.  per  annum  during  each  of  the 
5 fiscal  years  of  such  telephone  Co.  next  pre- 
ceding the  date  of  such  investment.  No  bond 
of  a telephone  Co.  shall  be  made  a legal  in- 
vestment under  Secs.  24  and  25  unless  during 
each  of  the  5 fiscal  years  of  such  telephone  Co. 
next  preceding  the  date  of  such  investment 
said  telephone  Co.  shall  have  paid  the  ma- 
tured principal  and  interest  of  all  its  indebt- 
edness, and  shall  have  paid,  during  each  of 

14 


Savings  Banks. 


CONNECTICUT. 


said  years,  in  cash  dividends  an  amount  equal 
to  not  less  than  6%  per  annum  on  all  its  out- 
standing issues  of  capital  stock,  and  the  divi- 
dends paid  on  the  capital  stock  of  such  tele- 
phone Co.  shall  not  have  been  less  than  the 
total  amount  necessary  to  pay  the  interest 
upon  its  entire  outstanding  indebtedness. 

Sec.  26.  Sav.  Bks.  may  invest  in  the  capital 
stock  of  any  Bk.  or  Tr.  Co.  located  in  this 
state,  or  in  the  city  of  N.  Y.  in  the  state  of  N. 
Y.,  or  in  the  city  of  Boston  in  the  state  of 
Mass.,  but  no  Sav.  Bk.  shall  hold  by  way  of 
investment  and  as  security  for  loans,  more 
than  20%  of  its  deposits  in  the  stocks  of  such 
Bks.  or  Tr.  Cos.,  at  par  value,  nor  more  than 
3%  of  its  deposits,  nor  more  than  $100,000. 
of  par  value  in,  nor  more  than  Y of  the  cap- 
ital stock  of,  any  such  Bk.  or  Tr.  Co.  The 
provisions  of  this  Sec.  shall  not  render  illegal 
any  such  investments  now  owned  by  any  Bk. 
or  trust  company. 

Sec.  27.  Sav.  Bks.  may  invest  in  loans  se- 
cured by  1st  Mtg.  on  unencumbered  real  es- 
tate, not  to  exceed  50%  of  the  value  of  such 
real  estate,  located  in  this  state,  or  in  the 
county  of  Providence  or  Washington  in  the 
state  of  R.  I.,  or  in  the  county  of  Hampden  or 
Berkshire  in  the  state  of  Mass.,  or  in  the 
county  of  Dutchess,  Putnam,  or  Westchester 
in  the  state  of  New  York. 

Sec.  28.  When  any  loan  is  made  by  a Sav. 
Bk..  upon  real  estate  the  security  shall  be  ap- 
praised by  2 or  more  suitable  persons,  well 
known  in  the  community  where  such  loan  is 
made,  one  of  whom  shall  be  a trustee  of  the 
Bk.  making  the  loan.  Such  appraisal  shall  ex- 
press upon  its  face  the  amount  at  which  such 
property  is  appraised,  and,  with  a certificate  of 
title  or  a title  Ins.  policy,  shall  be  lodged  and 
kept  with  the  institution  making  such  loan.  No 
loan  shall  be  made  by  any  Sav.  Bk.  to  any 
Corp.  or  Assoc,  or  ecclesiastical  society  se- 
cured by  Mtg.  upon  its  property,  unless  the 
same  shall  be  accompanied  by  the  individual 
guaranty  of  some  responsible  party  or  parties, 
or  by  other  collateral  security  of  value  equal 
to  the  amount  of  the  sum  loaned.  The  direc- 
ts 


CONNECTICUT. 


Savings  Banks. 


tors  or  trustees  of  any  Bk.  consenting  to  any 
loan  contrary  to  the  provisions  of  this  Sec. 
shall  be  individually  responsible  for  any  loss 
by  reason  of  such  loan. 

Sec.  29.  Sav.  Bks.  may  invest  not  exceeding 
20%  of  their  deposits  and  surplus  in  notes 
secured  by  pledge  of  stock  or  bonds  as  collat- 
eral, provided  the  Corp.  issuing  such  stock  or 
bonds  shall  have  paid  thereon  dividends  or 
interest  at  the  rate  of  not  less  than  4%  per 
annum  during  the  2 years  next  preceding  the 
time  when  such  loan  is  made ; or  by  the  pledge 
of  any  stock  or  bonds  or  other  obligations 
which  under  the  provisions  of  this  act  may  be 
purchased  by  Sav.  Bks.;  but  the  market  value 
of  any  securities  given  to  secure  any  collateral 
loan  shall  be  at  least  20%  in  excess  of  the 
amount  of  the  loan  and  not  more  than  5% 
of  the  aggregate  deposit  in  any  Sav.  Bk.  shall 
be  loaned  on  the  stock,  bonds,  or  other  obliga- 
tions of  one  Corp. ; or  by  the  pledge  of  de- 
posit accounts  and  books  in  Sav.  Bks.  in  this 
state  to  an  amount  not  exceeding  the  balance 
due  from  said  Sav.  Bks.  on  such  deposit  ac- 
count. 

Sec.  30.  Sav.  Bks.  may  invest  not  exceeding 
T0%  of  their  deposits  and  surplus  in  notes, 
each  of  which  shall  be  the  joint  and  several 
obligation  of  2 or  more  parties,  all  residents  of 
this  state,  but  no  Sav.  Bk.  shall  loan  on  per- 
sonal security  to  one  person  more  than  3% 
of  its  deposits  at  the  time  of  making  such 
loan.  No  Sav.  Bk  shall  buy,  or  lend  any 
money  upon,  any  obligations  on  which  only 
one  person  or  firm  shall  be  holden  without 
taking  additional  security  for  the  same  equiva- 
lent to  the  guaranty  or  endorsement  of  some 
other  responsible  party. 

Sec.  31.  No  Sav.  Bk.  shall  expend  in  the 
purchase  or  construction  of  any  building,  for 
the  purpose,  in  whole  or  in  part,  of  accommo- 
dating the  business  of  such  Bk.,  a greater 
sum  than  may  in  the  opinion  of  the  Bk.  Corns, 
properly  be  taken  from  the  surplus  of  such 
Bk.,  after  allowing  for  depreciation  of  its 
assets,  and  such  expenditures  shall  in  all  cases 
be  subject  to  the  approval  of  the  Bk.  Corns. 


Savings  Banks. 


CONNECTICUT. 


Sec.  32.  Sav.  Bks.  may  deposit  in  incorpo- 
rated Bks.  or  Tr.  Cos.  located  in  this  state  or 
the  state  of  N.  Y.,  Mass.,  or  R.  I.,  or  the  city 
of  Phila.,  but  such  deposits  shall  not  in  any 
case  exceed  30%  of  the  capital  stock,  surplus, 
and  undivided  profits  of  such  depositary. 

Sec.  33.  No  Sav.  Bk  shall  demand  or  re- 
ceive on  any  loan,  either  as  bonus,  commission, 
or  tax,  or  in  any  other  way,  directly  or  indi- 
rectly, more  than  6%  per  annum,  but  taking 
interest  in  advance,  for  a period  not  to  ex- 
ceed 6 months,  and  reimbursement  of  any 
money  paid  by  a Bk.  for  Ins.  or  taxes  on  prop- 
erty mortgaged  to  it,  shall  not  be  a violation 
of  this  section. 

Sec.  34.  When  any  loan  or  investment  is 
made  by  any  Sav.  Bk.  the  names  of  the  direc- 
tors or  trustees  consenting  thereto  shall  be  en- 
tered upon  the  records  of  such  Bk.,  and  said 
records  shall  be  open  at  all  times  to  the  in- 
spection of  the  corporators  and  auditors  of 
such  Bk.  and  the  Bk.  Corns.,  and  be  prima  facie 
evidence  of  the  truth  of  the  statements  there- 
in contained. 

Sec.  36.  The  provisions  of  this  act  shall  not 
render  illegal  the  investment  in,  nor  the  in- 
vestment hereafter  in,  any  bonds  or  interest- 
bearing  obligations  issued  or  assumed  by  a 
R.  R.  Corp.,  which  were  a legal  investment  at 
the  time  of  the  passage  of  this  act,  so  long  as 
such  bonds  or  interest-bearing  obligations  con- 
tinue to  comply  with  the  laws  in  force  prior  to 
the  passage  of  this  act,  but  no  such  bond  or 
interest-bearing  obligation  that  fails,  subse- 
quent to  the  passage  of  this  act,  to  comply 
with  said  laws  shall  again  be  a legal  invest- 
ment unless  such  bonds  or  interest-bearing 
obligations  comply  with  the  provisions  of  this 
act. 

Sec.  37.  If  any  St.  Rwy.  Co.,  the  bonds  of 
which  are  a legal  investment,  prior  to  the  pas- 
sage of  this  act,  shall  fail,  in  any  fiscal  year 
subsequent  to  the  passage  of  this  act,  to  pay 
dividends  equal  to  4%  upon  its  outstanding 
capital  stock,  the  bonds  of  such  Rwy.  Co.  shall 
cease  to  be  a legal  investment,  until  such  Co. 

17 


CONNECTICUT. 


Savings  Banks. 


has  complied  with  all  the  provisions  of  Sec. 
22  of  this  act. 

Sec.  38.  Prior  to  the  1st  day  of  Nov.,  1913, 
the  Bk.  Corns,  shall  ascertain  what  bonds  and 
other  interest-bearing  obligations  are  legal  in- 
vestments under  the  provisions  of  this  act  and 
shall  also  ascertain  what  bonds  and  obliga- 
tions are  then  legal  investments  under  the  pro- 
visions of  Sec.  36,  and  within  the  first  10  days 
of  Nov.,  1913,  said  Bk.  Corns,  shall  send  to 
each  Sav.  Bk.  and  to  each  Bk.  and  Tr.  Co. 
having  a Sav.  Dept,  a certificate,  stating  over 
their  signatures  that  upon  investigation  they 
find  that  the  bonds  and  obligations  specified  in 
one  list  in  said  certificate  are  authorized  as 
legal  investments  by  the  provisions  of  this 
act,  and  that  the  bonds  and  obligations  speci- 
fied in  a 2d  list  therein  are  authorized  as  legal 
investments  under  the  provisions  of  Sec.  36. 

Sec.  39.  Within  the  first  10  days  of  the 
month  of  Nov.,  1913,  and  of  the  months  of 
May  and  Nov.  in  each  year  thereafter,  said  Bk. 
Corns,  shall  send  to  each  Sav.  Bk.  and  to  each 
Tr.  Co.  having  a Sav.  Dept,  a similar  certificate. 

Sec.  40.  Said  certificate  shall  be  prima  facie 
evidence  of  the  correctness  of  the  findings  of 
said  Corns.,  and  shall  so  continue  until  the  is- 
suance of  the  next  certificate  of  said  Corns., 
or  of  an  intermediate  certificate  correcting 
and  changing  the  list  of  legal  investments  in 
the  certificate  last  issued.  The  purchase  of 
any  bond  or  obligation  specified  in  any  such 
certificate  made  before  said  respective  bonds 
or  obligations  are  withdrawn  or  omitted  by 
the  Bk.  Corns,  in  a subsequent  certificate  issued 
by  them  shall  be  a legal  investment  under  this 
act. 

Sec.  41.  Any  person  financially  interested 
in  any  finding  of  the  Bk.  Corns,  as  to  any  bond 
or  obligation,  may  take  an  appeal  therefrom 
to  the  superior  court  next  to  be  holden  at 
Hartford,  which  court  shall  have  power  to  in- 
quire into  and  render  a judgment  whether 
said  bond  or  obligation  comes  within  the  pro- 
visions of  this  act  as  an  authorized  investment 
for  Sav.  Bks.  In  case  of  such  an  appeal  due 
service  thereof  shall  be  made  upon  the  Bk. 


18 


Savings  Banks. 


CONNECTICUT. 


Corns,  at  least  12  days  before  the  return  day 
of  said  appeal. 

Sec.  42.  In  the  Secs,  of  this  act  which  re- 
late to  R.  R.  bonds  the  word  “debt”  shall  be 
construed  to  mean  obligations  issued  or  as- 
sumed, evidenced  by  a series  of  bonds  or  other 
interest-bearing  instruments  which  mature  at 
a time  or  times  exceeding  3 years  after  their 
date,  and  the  term  “railroad  corporation”  shall 
be  construed  to  mean  a Corp.  which  owns  or 
is  in  possession  of  and  operating  a R.  R.  or 
Rwy.  of  the  class  usually  operated  by  steam 
power,  St.  Rwy.  Corps,  are  not  R.  R.  Corps, 
within  the  meaning  of  this  act. 

[The  following  paragraphs  8,  9,  and  io,  of 
Sec.  3428  of  the  Gen.  Statutes  are  herewith 
published  because  of  the  provisions  of  Sec.  36 
of  Chap.  127  of  the  Public  Acts  of  1913 :] 

(8)  in  the  bonds  of  any  R.  R.  Co.  organized 
under  the  laws  of  any  of  the  states  mentioned 
in  this  sec.,  and  which  bonds  are  secured  by  a 
ist  Mtg.  as  the  only  Mtg.  security  given  by 
such  R.  R.  Co.  upon  some  portion  of  the  R.  R. 
owned  by  it,  or  given  by  a R.  R.  Co.,  a major- 
ity of  the  capital  stock  in  which  is  owned  by 
the  R.  R.  Co.  issuing  such  bonds,  upon  some 
portion  of  the  R.  R.  owned  by  it  but  leased  or 
operated  by  the  R.  R.  Co.  issuing  such  bonds, 
and  which  portion  of  such  R.  R.  in  either  case 
shall  be  located  wholly  or  in  part  in  one  or 
more  of  the  states  mentioned  in  this  Sec.,  pro- 
vided the  entire  R.  R.  of  such  Co.  is  located 
wholly  within  the  U.  S. ; in  the  consolidated 
bonds  of  any  R.  R.  Co.  incorporated  by  this 
state  and  authorized  to  issue  such  bonds  to  re- 
tire the  entire  funded  debt  of  such  Co. ; provid- 
ed, that  in  every  case  such  Co.  shall  have  paid 
each  year,  for  a period  of  not  less  than  5 years 
next  previous  to  such  investment,  in  addition 
to  the  interest  on  its  funded  indebtedness,  divi- 
dends of  not  less  than  4%  per  annum  upon  its 
entire  capital  stock  outstanding;  and  provided 
further,  that  said  outstanding  capital  stock  at 
the  time  of  such  investment  equals  or  exceeds 
in  amount  1/t>  of  the  entire  outstanding  issue 

19 


CONNECTICUT. 


Sayings  Banks. 


of  such  bonds;  (9)  in  the  bonds  of  the  fol- 
lowing-named R.  R.  Cos.,  viz. : Boston  & Al- 
bany R.  R.  Co.,  Boston  & Lowell  R.  R.  Co., 
Boston  & Maine  R.  R.  Co.,  Concord  & Mon- 
treal R.  R.  Co.,  Fitchburg  R.  R.  Co.,  Harlem 
River  & Portchester  R.  R.  Co.,  Maine  Central 
R.  R.  Co.,  New  Eng.  R.  R.  Co.,  N.  Y.  & New 
Eng.  R.  R.  Co.,  N.  Y.,  New  Haven  & Hartford 
R.  R.  Co.,  and  Old  Colony  R.  R.  Co. ; also  the 
following  securities : Central  R.  R.  Co.  of  N.  J., 
Gen.  Mtg.  5%  gold  bonds,  due  July  1,  1987; 
Burlington,  Cedar  Rapids  & Northern  Rwy. 
Co.  system,  Cedar  Rapids,  Iowa  Falls  & North- 
western Rwy.  Con.  1st  Mtg.  5%  bonds,  due 
Oct.  1,  1921,  and  Burlington,  Cedar  Rapids  & 
Northern  Rwy.  Co.  Con.  1st  Mtg.  and  Col.  Tr. 
5%  bonds,  due  Apr.  1,  1934;  Great  Northern 
Rwy  Co.  system,  St.  Paul,  Minneapolis,  & 
Manitoba  R.  R.  Co.,  Montana  Extension,  4% 
bonds,  due  June  1,  1937 ; Pacific  Extension 
Mtg.  4%  bonds,  due  July  1,  1940;  Montana 
Cent.  Rwy.  Co.  1st  Mtg.  5%  and  6%  bonds, 
due  July  1,  1937,  and  Wilmar  & Sioux  Falls 
Rwy.  Co.  Tst  Mtg.  5%  bonds,  due  June  1,  1938; 
111.  Cent.  R.  R.  Co.  system,  Chicago,  St.  Louis, 
and  New  Orleans  R.  R.  Co.  Con.  Mtg.  5% 
and  3P>%  bonds,  due  June  15,  1951 ; Chicago 
& Northwestern  Rwy.  Co.  system,  Chicago,  St. 
Paul,  Minneapolis,  & Omaha  Rwy.  Co.,  Con. 
Mtg.  6%  bonds,  due  June  1,  1930,  and  in  the 
Mtg.  bonds  heretofore  issued  which  said  Con. 
Mtg.  6%  bonds  are  to  retire  at  maturity; 
Chicago  & Eastern  111.  R.  R.  Co.,  Gen.  Con. 
and  1st  Mtg.  5%  bonds,  due  Nov.  1,  1937,  and 
in  the  Mtg.  bonds  heretofore  issued,  which 
said  Gen.  Con.  and  1st  Mtg.  5%  bonds  are  to 
retire  at  maturity;  Minneapolis  and  St.  Louis 
R.  R.  Co.  1st  and  Refd.  Mtg.  4%  bonds,  due 
Mar.  t,  1949,  and  in  the  Mtg.  bonds  heretofore 
issued  which  said  1st  and  Refd.  bonds  are  to 
retire  at  maturity;  Milwaukee  & Northern  R. 
R.  Co.  Con.  Mtg.  6%  bonds,  due  June  1,  1913, 
and  in  the  Mtg.  bonds  heretofore  issued  which 
said  Con.  6%  bonds  are  to  retire  at  maturity; 
Atlantic  Coast  Line  R.  R.  Co,  1st  Con.  Mtg. 
4%  gold  bonds,  due  July  1,  1952^  and  in  the 
Mtg.  bonds  heretofore  issued  which  said  1st 

20 


Savings  Banks. 


CONNECTICUT 


Con.  Mtg.  bonds  are  to  retire  at  maturity; 
Terminal  R.  R.  Assoc,  of  St.  Louis  Gen.  Mtg. 
Refd.  4%  Sink.  Fd.  gold  bonds  of  1953,  and  in 
the  Mtg.  bonds  heretofore  issued  which  said 
Gen.  Mtg.  bonds  are  to  retire  at  maturity ; St. 
Louis,  Iron  Mountain  & Southern  R.  R.  Co., 
River  & Gulf  Div.,  1st  Mtg.  4%  bonds,  due 
May  1,  1933  ; Buffalo  & Susquehanna  R.  R.  Co. 
1st  Mtg.  4%  gold  bonds,  due  in  1951;  (I0) 
any  Gen.  or  Con.  Mtg.  bonds  issued  by  any  of 
the  following-named  R.  R.  Cos.  to  retire  all  of 
the  outstanding  prior  Mtg.  bonds  secured  upon 
the  property  covered  by  such  Gen.  or  Con. 
Mtg. : Chicago  & Northwestern  Rwy.  Co.,  Chi- 
cago, Burlington  & Quincy  R.  R.  Co.,  Chicago, 
Milwaukee  & St.  Paul  Rwy.  Co.,  Chicago,  Rock 
Island  & Pac.  Rwy  Co.,  Chicago  & Alton  R.  R. 
Co.,  Cleveland  & Pittsburg  R.  R.  Co.,  Lake  Shore 
& Mich.  South.  R.  R.  Co..  Mich.  Cent.  R.  R.  Co., 
Morris  & Essex  R.  R.  Co.,  N.  Y.  Cent.  & Hudson 
Riv.  R.  R.  Co.,  Penn.  R.  R.  Co.,  St.  Paul,  Minne- 
apolis & Manitoba  Rwy.  Co.,  Eastern  Rwy.  Co. 
of  Minn.,  North.  Div.,  and  in  the  Mtg.  bonds 
hitherto  issued  which  such  consolidated  or 
Gen.  Mtg.  bonds  are  to  retire  at  maturity; 
Louisville  & Nashville  R.  R.  Co.,  and  in  the 
Mtg.  bonds  hitherto  issued  which  such  Con. 
or  Gen.  Mtg.  bonds  are  to  retire  at  maturity; 
provided,  that  at  no  time  within  5 years  next 
preceding  the  date  of  such  investment  in  such 
Gen.  or  Con.  Mtg.  bonds  issued  by  any  of  the 
R.  R.  Corps,  last  named  shall  such  R.  R. 
Corp.  have  failed  to  pay  regularly  and  punctu- 
ally the  principal,  at  maturity  or  as  extended, 
and  interest  on  all  its  Mtg.  indebtedness,  and, 
in  addition  thereto,  dividends  upon  all  its  out- 
standing capital  stock  during  the  preceding  5 
years;  and  provided  further,  that  at  the  date 
of  every  such  dividend  the  outstanding  capital 
stock  of  such  R.  R.  Corp.  shall  have  been 
equal  to  at  least  of  the  total  Mtg.  indebted- 
ness of  such  R.  R.  Corp.,  including  all  bonds 
issued  or  to  be  issued  under  any  Mtg.  secur- 
ing any  bonds  in  which  such  investment  shall 
be  made.  No  bond  of  any  R.  R.  Corp.  named 
in  this  Sec.  shall  be  a legal  investment  for  a 
Sav.  Bk.  when  such  Corp.,  or  the  system  of 

21 


CONNECTICUT.  State  Banks  and  Trust  Companies. 


which  it  is  a part,  shall  fail  to  pay  dividends 
on  all  of  its  capital  stock;  and  this  Sec.  shall 
not  be  held  to  authorize  any  investment  in 
the  bonds  of  any  Corp.  operating  its  R.  R.  ex- 
clusively by  any  means  other  than  steam  as  a 
motive  power,  or  in  the  bonds  of  any  street 
railway  company. 

Chap.  171  of  the  public  acts  of  1903  as 
amended  by  Chap.  184  of  the  public  acts  of 
1905  is  hereby  amended  to  read  as  follows : 
Sav.  Bks.  may  invest  their  deposits  and  sur- 
plus in  the  1st  Mtg.  bonds  of  the  Hartford  St. 
Rwy.  Co.,  and  the  Fair  Haven  and  Westville 
R.  R.  Co.,  and  in  all  bonds  of  the  Con.  Rwy. 
Co.,  and  the  Connecticut  Rwy.  and  Light.  Co. 

Sec.  3439.  No  Sav.  Bk.  shall  demand  or  re- 
ceive on  any  loan,  either  as  bonus,  commission, 
or  tax,  or  in  any  other  way,  directly  or  indi- 
rectly, more  than  6%  a year,  and  at  that  rate 
for  a longer  or  shorter  period;  but  the  taking 
of  interest  in  advance  for  a period  not  to  ex- 
ceed 6 months,  and  the  reimbursement  of  any 
money  paid  by  a Bk.  for  Ins.  on  property 
mortgaged  to  it,  shall  not  be  a violation  of 
this  section. 

Sec.  3446.  No  officer,  director,  or  trustee 
of  a Sav.  Bk.  shall  be  a borrower,  or  surety 
for  a borrower,  of  any  of  its  funds,  or  re- 
ceive any  money  or  valuable  thing,  for  nego- 
tiating, procuring,  or  recommending  any  such 
loan  from  such  Sav.  Bk.,  or  for  selling  or  aid- 
ing in  the  sale  of  any  stocks  or  securities  to 
such  Sav.  Bk.  The  word  “director”  or  “trus- 
tee” as  used  in  this  Sec.  shall  not  include  any 
incorporator  of  any  Bk.  or  Tr.  Co.  unless  such 
incorporator  shall  have  been  elected  as  a di- 
rector or  trustee  and  shall  have  accepted  such 
office. 

STATE  BANKS  AND  TRUST  COMPANIES. 

Sec.  35.  All  Bks.  and  Tr.  Cos.  maintaining 
a Sav.  Dept.,  or  soliciting  or  receiving  de- 
posits as  savings,  shall  invest  all  such  deposits 
so  received  according  to  the  requirements  of 
the  Gen.  statutes  concerning  the  investment 
of  deposits  in  Sav.  Bks.;  and  said  investments 

22 


State  Banks  and  Trust  Companies.  CONNECTICUT. 


shall  be  segregated  and  set  apart  and  not 
mingled  with  other  assets  of  such  Bk.  or  Tr. 

C '' nrrmnnips  ^ ^ 

Sec.  8.  * * * Such  Corp.  * * * may  loan 

money  secured  by  real  estate  Mtgs.  located 
in  this  state  or  on  personal  security;  it  may 
purchase  and  hold  real  estate  situated  in  this 
state,  provided  that  not  more  than  25%  of 
the  capital,  surplus,  and  undivided  profits  of 
any  such  Corp.  shall  be  at  any  time  invested 
in  real  estate  and  not  more  than  25%  of  its 
commercial  deposits  shall  be  loaned  on  real 
estate  security,  but  this  limitation  shall  not 
apply  to  funds  held  by  any  State  Bk.  or  Tr. 
Co.  in  its  Sav.  Dept.  * * * 

Sec.  3401.*  No  State  Bk.  or  Tr.  Co.  shall 
make  any  loan  or  discount  on  a pledge  of  its 
own  stock,  or  establish  any  branch  office,  or 
agency  thereof,  or  employ  any  agent  or  per- 
son to  make  loans  or  discounts  at  any  other 
place  than  its  banking  house. 

Sec.  3402.  The  total  liabilities  to  any  State 
Bk.  or  Tr.  Co.  of  any  person,  Corp.,  or  firm, 
for  money  borrowed,  including  in  the  liabili- 
ties of  a firm  the  liabilities  of  the  several 
members  thereof,  shall  at  no  time  exceed  10% 
of  the  amount  of  the  capital  stock  of  such  Bk. 
or  Tr.  Co.  actually  paid  in  and  its  surplus  and 
undivided  profits  combined ; and  the  provi- 
sions of  all  State  Bk.  or  Tr.  Co.  charters  in- 
consistent herewith  are  hereby  repealed.  The 
provisions  of  this  Sec.  shall  not  apply  to  loans 
secured  by  collateral,  so  long  as  the  market 
value  of  such  collateral  shall  exceed  by  20% 
the  total  liabilities  secured  in  each  case  by 
such  collateral,  but  no  loan  on  collateral  shall 
at  any  time  exceed  20%  of  the  amount  of  the 
capital  stock  of  such  Bk.  or  Tr.  Co.  actually 
paid  in  and  its  surplus  and  undivided  profits 
combined,  and  the  total  loans  to  any  one  per- 
son, Corp.,  or  firm,  including  in  the  liabilities 
of  the  firm,  the  liabilities  of  the  several  mem- 
bers thereof,  shall  at  no  time  exceed  20%  of 


* Sec.  3401.  Refers  to  specific  pledge  ; not  in- 
consistent with  lien  for  stockholder’s  debt.  20  C. 
157.  Prohibition  of  loans  on  its  stock  implies  pro- 
hibition of  purchase  of  stock  by  Corp.  52.  C.  99. 

23 


CONNECTICUT.  State  Banks  and  Trust  Companies. 

the  capital,  surplus,  and  undivided  profits  com- 
bined of  such  bank  or  trust  company.  * * * 
_ Sec.  3403.  No  State  Bk.  or  Tr.  Co.  shall 
discount  any  paper  made,  accepted,  or  indorsed 
by  any  of  its  executive  officers  or  clerks,  or 
by  any  partnership  of  which  any  one  of  such 
officers  or  clerks  is  a member,  nor  make  any 
loans,  either  with  or  without  collateral  secu- 
rity, to  any  such  officer,  clerk,  or  partnership, 
nor  permit  any  such  officer  to  overdraw  his 
account  * * * 

Sec.  3404.  When  the  loans  and  discounts  of 
any  State  Bk.  or  Tr.  Co.  to  parties  in  this 
state  shall,  in  the  aggregate,  amount  to  ^2  of 
its  capital  stock,  it  may  loan  to  parties  out  of 
this  state,  and  not  otherwise. 

Sec.  3411.  No  director  of  any  State  Bk.  or 
director  or  trustee  of  any  Tr.  Co.  shall  be  ob- 
ligated to  any  such  Bk.  or  Tr.  Co.  to  an 
amount  exceeding  5%  of  its  capital  actually 
paid  in  and  its  surplus  and  undivided  profits 
combined.  The  provisions  of  this  Sec.  shall 
not  apply  to  loans  secured  by  collateral,  so 
long  as  the  market  value  of  such  collateral 
shall  exceed  by  20%  the  total  liabilities  se- 
cured in  each  case  by  such  collateral.  The 
total  loans  to  any  director  or  trustee  shall,  at 
no  time,  exceed  10%  of  the  capital  stock  of 
such  Bk.  or  Tr.  Co.  actually  paid  in  and  its 
surplus  and  undivided  profits  combined.  No 
such  Bk.  or  Tr.  Co.  shall  permit  its  directors 
or  trustees  to  become  obligated  to  it  to  an 
amount  at  any  time  exceeding  in  the  aggregate 
the  sum  of  30%  of  its  capital  actually  paid  in 
and  its  surplus  and  undivided  profits  com- 
bined. * * * 

Sec.  3412.  If  any  director  of  any  State  Bk. 
or  any  trustee  or  director  of  any  Tr.  Co.,  shall 
receive  any  compensation  for  indorsing  any 
paper  discounted  by  such  Bk.  or  Tr.  Co.,  he 
shall  be  fined  not  less  than  $500  nor  more  than 
$1,000  for  each  offense. 

Sec.  3400.  Every  State  Bk.  and  Tr.  Co. 
shall  at  all  times  maintain  a reserve  fund  of 
15%  of  its  aggregate  deposits.  Of  this  re- 
serve fund,  not  less  than  4-i5ths  shall  consist 
of  gold  and  silver  coin,  the  demand  obliga- 


State  Banks  and  Trust  Companies.  CONNECTICUT. 


tions  of  the  U.  S.,  or  Nat.  Bk.  currency,  and 
be  held  by  such  Bk.  or  Tr.  Co.  in  its  banking 
office.  The  remainder  of  such  reserve  fund, 
may  consist  of  balances  subject  to  demand 
draft  with  reserve  agents  and  of  R.  R.  bonds 
which  are  legal  investments  for  the  Sav.  Bks. 
of  this  state;  provided,  that  such  reserve 
agents  shall  be  Bks.  which  are  members  of 
the  Clg.  House  Assocs.  of  N.  Y.,  Boston, 
Philadelphia,  Chicago,  or  Albany,  or  Nat.  Bkg. 
Assocs.,  State  Bks.  or  Tr.  Cos.  located  in  New 
Haven,  Hartford  or  Bridgeport,  and  in  each 
instance  approved  by  the  Bk.  Corns.,  and  that 
the  R.  R.  bonds,  held  as  a part  of  such  re- 
serve, shall  at  no  time  exceed  at  par  value 
i-5th  of  the  total  reserve  fund.  Whenever 
the  reserve  fund  of  any  State  Bk.  or  Tr.  Co. 
shall  be  below  said  15%,  such  Bk.  or  Tr.  Co. 
shall  not  make  any  new  loans  or  discounts,  or 
make  any  dividends  of  its  profits,  until  its  re- 
serve fund  is  restored  to  the  required  15%.  * * * 

Sec.  5.  This  act  shall  in  no  way  limit  the 
right  of  any  Tr.  Co.  to  receive  deposits  and 
invest  its  funds  upon  such  terms  and  condi 
tions  as  are  provided  for  in  its  charter,  ex- 
cept as  to  deposits  in  its  Sav.  Dept,  as  pro- 
vided by  this  act. 

See  also  Sec.  3446  under  Sav.  Bks. 


Savings  Banks,  State  Banks. 


ILLINOIS 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  broivn. 

Other  matter  in  black. 

ILLINOIS. 

SAVINGS  BANKS. 

(Strictly  speaking,  there  are  no  Sav.  Bks. 
in  111.  The  banking  act  has  been  construed, 
however,  as  permitting  State  Bks.  to  operate 
Sav.  Depts.  See  State  Bks.) 

STATE  BANKS. 

Sec.  i.  * * * It  shall  be  lawful  to  form  Bks. 
and  banking  associations,  as  hereinafter  pro- 
vided, for  the  purpose  of  discount  and  de- 
posit, buying  and  selling  exchange  and  do- 
ing a general  banking  business',,  excepting 
the  issuing  of  bills  to  circulate  as  money, 
and  such  Bks.  or  banking  associations  shall 
have  the  power  to  loan  money  on  personal 
and  real  estate  security  and  to  accept  and 
execute  trusts. 

§ 9.  Associations  organized  under  this 

Act  * * * may  own,  possess  and  may  carry 
as  assets  the  real  estate  necessary  in  which 
to  do  its  banking  business,  and  such  other 
real  estate  to  which  it  may  obtain  title  in  the 
collection  of  its  debts,  but  shall  not  carry 
in  its  assets  any  real  estate  except  its  bank- 
ing house  for  a period  of  more  than  5 yrs. 
after  acquiring  title  to  the  same. 

§ 10.  The  total  liabilities  to  any  asso- 
ciation of  any  person  or  of  any  Corp.  or 
firm  for  money  borrowed,  including  in  the 
liabilities  of  a Co.  or  firm  the  liabilities  of  the 
several  members  thereof,  shall  at  no  time 
exceed  15%  of  the  amount  of  the  capital 
stock  of  such  association  actually  paid  in  and 
unimpaired  and  15%  of  its  unimpaired  sur- 
plus fund. 

Provided,  however,  that  the  total  liabili- 
ties of  any  such  person,  Co.  or  firm,  shall 
at  no  time  exceed  30%  of  the  amount  of 
capital  actually  paid  in ; And,  Provided 


1 


ILLINOIS. 


Trust  Companies. 


further,  that  undivided  profits  shall  not  be 
construed  as  a part  of  the  surplus ; but  the 
discount  of  bills  of  exchange  drawn  in  good 
faith  against  actually  existing  values,  and 
the  discount  of  commercial  or  business  paper 
actually  owned  by  the  person  negotiating  the 
same  shall  not  be  considered  as  money 
borrowed. 

Every  such  loan  made  in  violation  of  the 
provisions  hereof  shall  be  due  and  payable 
according  to  its  terms,  and  the  remedy  for 
the  recovery  of  any  money  loaned  in  viola- 
tion of  the  provisions  hereof,  or  for  the  en- 
forcement of  any  agreement,  collateral  or 
otherwise,  made  in  connection  with  any  such 
loan,  shall  not  be  held  to  be  impaired,  affected 
or  prohibited  by  reason  of  such  violation, 
but  such  remedy  shall  exist  notwithstanding 
the  same.  But  every  director  of  any  such 
association  who  shall  violate,  or  participate 
in,  or  assent  to  such  violation,  or  who  shall 
permit  any  of  the  officers,  agents  or  servants 
of  the  association  to  violate  the  provisions 
hereof,  shall  be  held  liable  in  his  personal 
and  individual  capacity  for  all  damages 
which  the  association,  its  shareholders  or  any 
other  person  shall  have  sustained  in  conse- 
quence of  such  violation. 

It  shall  not  be  lawful  for  any  Bk.  to  loan 
to  its  president  or  to  any  of  its  vice-presi- 
dents or  its  salaried  officers  or  employes,  or 
to  Corps,  or  firms  controlled  by  them,  or  in 
the  management  of  which  any  of  them  are 
actively  engaged,  until  an  application  for 
: such  loan  shall  have  been  first  approved,  both 
as  to  security  and  amount,  by  the  board  of 
| directors. 

TRUST  COMPANIES. 

Sec.  i.  § 3.  * * * The  amount  of  money 
which  any  such  Corp.  shall  have  on  deposit  at 
any  time  shall  not  exceed  10  times  the  amount 
of  its  paid  up  capital  and  surplus,  and  its 
outstanding  loans  shall  not  at  any  time  ex- 
ceed said  amount. 

§ 6.  Each  Co.  in  all  cities  and  towns 


2 


Trust  Companies. 


ILLINOIS 


of  100,000  inhabitants  or  more,  before  accept- 
ing any  such  appointment  or  deposit,  shall 
deposit  with  the  Auditor  of  Public  Accounts 
the  sum  of  $200,000,  and  each  Co.  in  all 
cities  and  towns  of  less  than  100,000  inhabi- 
tants shall  deposit  with  the  Auditor  of  Pub- 
lic Accounts  the  sum  of  $50,000,  said  deposit 
to  be  for  the  benefit  of  the  creditors  of  said 
Co.,  and  to  consist  of  bonds  of  the 
U.  S.  or  municipal  bonds  of  this  State,  or 
in  Mtgs.  on  improved  and  productive  real 
estate  in  this  State,  being  1st  liens  thereon, 
and  the  real  estate  being  worth  at  least  twice 
the  amount  loaned  thereon.  Bonds  and  se- 
curities so  deposited  may  be  exchanged,  from 
time  to  time,  for  other  securities  receivable 
as  aforesaid.  Said  bonds  of  the  U.  S.  or 

municipal  bonds  of  this  State  to  be  regis- 
tered in  the  name  of  said  Auditor  offi- 

cially, * * * So  long  as  the  Co.  so  deposit- 
ing shall  continue  solvent,  such  Co.  shall 
be  permitted  to  receive  from  said  Auditor  the 
interest  or  dividends  on  said  deposit. 

(The  amount  of  the  deposit  required  may 
be  increased  or  decreased  by  the  Auditor  of 
public  accounts  under  certain  conditions.) 

§ 7.  When  any  part  of  such  deposit  is 
made  in  bonds  and  Mtgs.  it  shall  be  accom- 
panied by  full  abstracts  of  titles  and  searches, 
and  shall  be  examined  and  approved  by  or 
under  the  direction  of  the  Auditor.  The 

fees  for  an  examination  of  title  by  coun- 
sel, to  be  paid  by  the  Co.  making  the  deposit, 
shall  not  exceed  $20  for  each  Mtg.,  and  the 
fee  for  each  appraiser  not  exceeding  two, 
besides  expenses,  shall  be  $5  for  each  Mtg. 


. ..  :•  . 


’ 

' 

: • 


’ 

* 


' 


4 

■ 


l 


Banks  of  Discount  and  Deposit. 


INDIANA. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown . 

Other  matter  in  black. 


INDIANA. 


Corrected  to  January  i,  1911. 


BANKS  OF  DISCOUNT  AND  DEPOSIT. 
Chapter  II. 


Sec.  4.  * * * and  may  exercise,  under  this 
act,  all  the  powers  incidental  and  proper,  or 
which  may  be  necessary  and  usual  in  carry- 
ing on  the  business  of  banking  as  a Bk.  of 
Discount  and  Deposit;  may  receive  deposits, 
buy  and  sell  exchange,  gold  and  silver  coin 
and  bullion,  and  may  loan  money,  negotiate, 
sell  and  guarantee  such  loans,  and  promis- 
sory notes,  bonds,  drafts,  bills  of  exchange 
and  other  evidences  of  debt,  and  any  securi- 
ties thereof ; * * * 

And  such  association  may  contract  for, 
charge,  take,  reserve,  and  receive  on  loans 
and  discounts,  the  highest  rate  of  interest 
allowed  by  the  law  of  this  state  to  be  con- 
tracted for,  taken  and  received  by  individ- 
uals. 

. Sec.  12.  It  shall  be  lawful  for  any  associa- 
tion organized  under  this  act,  to  purchase, 
hold  and  convey  real  estate  as  follows : 

1st.  Such  as  shall  be  necessary  for  the  im- 
mediate accommodation  in  the  transaction  of 
its  business. 

2d.  Such  a3  shall  be  mortgaged  to  it  in 
good  faith  by  way  of  security  for  debts. 

3d.  Such  as  shall  be  conveyed  to  it  in  satis- 
faction of  debts  previously  contracted  in  the 
course  of  its  dealings. 

4th.  Such  as  it  shall  purchase  at  sales, 
under  judgments,  decrees  or  Mtgs.  held  by 
such  association,  or  shall  purchase  to  secure 
debts  due  to  said  association. 

Such  association  shall  not  purchase  or  hold 
real  estate  in  any  other  case  or  for  any 
other  purpose  than  as  specified  in  this  Sec., 
nor  shall  it  hold  the  possession  of  any  real 

1 


Savings  Banks. 


estate  under  Mtg.,  nor  hold  the  title  and 
possession  of  any  real  estate  purchased  to 
secure  any  debts  to  it  for  a longer  period 
than  5 yrs. 

Chapter  VIII. 

(Acts  1905,  p.  675.) 

Sec.  3.  Whoever,  being  president,  director, 
cashier,  teller,  clerk,  officer,  or  employee  of 
any  incorporated  Bk.,  or  of  any  firm,  Corp., 
person  or  association  doing  a banking  busi- 
ness, shall,  in  any  way,  obtain  as  a borrower 
any  of  the  funds  of  such  Bk.,  firm,  Corp., 
person  or  association  doing  a banking  busi- 
ness, without  first  executing  his  note  or  other 
evidence  of  debt  therefor,  bearing  the  writ- 
ten consent  thereto  of  the  board  of  directors 
of  any  such  incorporated  Bk.,  or  the  manager 
or  managers  of  any  other  such  firm,  Corp., 
person  or  association  doing  a banking  busi- 
ness, indorsed  on  such  note  or  other  evi- 

dence of  debt,  shall  be  deemed  guilty  of  a 
felony  * * * 

SAVINGS  BANKS. 

Chapter  V. 

Sec.  19.  It  shall  be  lawful  for  the  trustees 
of  any  Sav.  Bk.  to  invest  the  money  depos- 
ited therein  only  as  follows,  to  wit : 1st,  in 
the  stocks  or  bonds  or  treasury  notes  of  the 
U.  S. ; 2d,  in  the  stocks  or  bonds  of  this 

state;  3rd,  in  the  orders  or  bonds  of  any 

county,  city  or  town  in  this  state,  issued 
pursuant  to  the  authority  of  law;  4th,  in 
the  stocks  or  bonds  of  any  state  in  the  Union 
that  has,  for  5 yrs.  previous  to  such  invest- 
ment being  made,  regularly  paid  the  interest 
on  its  legal  bonded  debt  in  lawful  money 

of  the  U.  S. ; 5th,  in  bonds  or  notes  secured 
by  Mtg.  or  unincumbered  real  estate  situate 
in  the  county  where  the  Bk.  is  located  or  in 
an  adjoining  county  in  an  adjoining  state 
(or  in  any  other  county  in  the  state  of  Ind.) 
worth,  exclusive  of  perishable  improvements, 
at  least  twice  the  amount  loaned  thereon ; 
6th,  in  promissory  notes  or  bills  of  exchange 


Savings  Banks. 


INDIANA. 


before  their  maturity,  payable  at  some  char- 
tered Bk.  within  this  state,  and  having  not 
to  exceed  12  mos.  to  run  from  the  date  of 
the  loan  or  purchase,  made  or  endorsed  by 
two  or  more  responsible  freeholders,  one  of 
whom,  at  least,  shall  be  a resident  of  the 
state  of  Ind. : Provided,  That  no  such  note 
or  bill  shall  exceed  the  sum  of  $10,000,  and 
that  no  more  than  $10,000  shall  be  loaned  on 
the  same  security;  7th,  in  real  estate  subject 
to  the  provisions  of  Sec.  24;  8th,  in  dealing 
in  exchange,  by  purchasing  and  selling  sight 
or  time  drafts  payable  out  of  this  state : 
Provided,  That  no  such  draft  shall  be  for  a 
larger  sum  than  $10,000,  nor  shall  any  time 
draft  payable  out  of  the  state  be  so  pur- 
chased which  shall  have  at  time  of  such 
purchase  more  than  60  days  to  run  until  it 
matures : And  provided,  also,  That  not  more 
than  one  draft  shall  be  held  by  any  such  Bk., 
at  any  one  time,  which  is  secured  by  the  same 
endorsers,  or  by  any  of  the  same  endorsers. 

(Acts  1903,  p.  211.) 

Sec.  20.  It  shall  be  lawful  for  the  trustees 
of  any  Sav.  Bk.,  while  awaiting  opportunity 
for  the  judicious  investment  of  the  funds  de- 
posited wTith  them,  to  loan  the  moneys  so  de- 
posited upon  the  security  of  the  stocks  and 
other  securities  mentioned  in  the  preceding 
Sec.,  not  exceeding  90%  of  the  cash  mar- 
ket value  thereof. 

Sec.  21.  Should  the  stocks  or  other  se- 
curities on  which  loans  are  made,  pursu- 
ant to  the  provisions  of  the  last  preceding 
Sec.,  depreciate  in  value  after  making  any 
loan  thereon,  it  shall  be  the  duty  of  the 
trustees  to  require  the  immediate  payment 
of  such  loan  made  by  them  thereon,  or 
additional  security  therefor,  so  that  the 
amount  so  loaned  shall  at  no  time  exceed 
90%  of  the  market  value  of  such  securities; 
and  no  loan  shall  be  so  made  without  an 
agreement  from  the  borrower  that  the  same 
shall  be  subject  to  the  conditions  of  pay- 
ment . or  of  additional  security,  as  required 
by  this  Sec. 


3 


INDIANA. 


Savings  Banks. 


Sec.  23.  No  loan  shall  be  made  upon  the 
security  of  real  estate,  as  provided  in  subdiv. 

5 of  Sec.  19,  or  upon  notes  or  bills  as  pro- 
vided in  subdiv.  6 of  said  Sec.,  without  the 
consent  of  the  majority  of  the  trustees,  or  ^ 
the  unanimous  consent  of  the  committee  of 
investment,  which  may  be  created  under  the 
by-laws  of  such  Bk. 

Sec.  24.  It  shall  be  lawful  for  the  trustees 
of  any  Sav.  Bk.  to  purchase,  hold  and  con- 
vey real  estate  as  follows,  and  not  other- 
wise : 

1st.  A lot  and  banking-house  requisite  for 
the  transaction  of  its  business,  and  for  an 
income  from  such  portions  of  the  same  as 
are  not  required  for  its  own  use. 

2d.  Such  as  shall  have  been  mortgaged  to 
it  in  good  faith  for  money  loaned,  or  upon 
which  it  shall  have  purchased  a Mtg. 

3d.  Such  as  shall  have  been  purchased  at 
sales  upon  judgments  or  decrees  obtained 
upon  claims  in  favor  of  the  Bk.,  or  which 
may  be  so  purchased  to  prevent  loss  upon 
claims  held  by  the  Bk. 

Sec.  25.  No  banking  house  shall  be  erected 
or  purchased  by  any  Sav.  Bk.  until  the  es- 
timated cost  of  the  same,  and  of  the  income 
to  be  derived  therefrom,  shall  be  submitted 
to  and  approved  by  the  auditor  of  state,  nor 
shall  the  same  cost  to  exceed  5%  of  the 
amount  of  deposits  of  such  Bk. 

Sec.  26.  All  such  real  estate  as  is  described 
in  subdivs.  2 and  3 of  Sec.  24  shall  be  sold 
within  3 yrs.  after  the  same  has  become 
vested  in  such  Sav.  Bk.,  if  the  same  will  bring 
the  amount  due  on  account  thereof ; and 
if  it  can  not  be  sold  for  a sufficient  sum  for 
that  purpose,  the  auditor  of  state  may  give 
such  further  time  as  he  shall  deem  necessary 
in  which  to  sell  the  same. 

Sec.  27.  It  shall  not  be  lawful  for  any  H 
vSav.  Bk.  to  deal  or  trade  in  real  estate  in 
any  other  case  or  for  any  other  purpose  than 
as  authorized  in  the  24th  Sec.  of  this  Act, 
or  to  deal  or  trade  in  any  goods,  wares  or 
merchandise,  except  as  herein  authorized,  and 
except  such  personal  property  as  may  be 


4 


Loan,  Trust  and  Safe  Deposit  Companies.  INDIANA. 


necessary  in  the  transaction  of  its  business. 

See  also  Chap.  VIII  under  Banks  of  Dis- 
count and  Deposit. 


LOAN,  TKUST  AND  SAFE  DEPOSIT 

COMPANIES. 

Chapter  VI. 

Sec.  io.  Any  such  Corp.  so  organized  and 
authorized  to  transact  business  shall  have 
power  and  authority: 

ist.  To  acquire,  purchase,  own,  hold,  use 
and  improve  and  for  that  purpose  to  Mtg., 
lease,  sell  and  convey  such  real  estate  and 
personal  property  as  may  be  necessary  for 
the  convenient  transaction  of  its  business, 
and  for  the  use  and  occupation  of  its  of- 
ficers, agents  and  employees,  and  the  safe 
keeping  of  its  assets,  deposits  and  property 
held  in  trust.  Any  estate,  or  interest  in  real 
estate,  which  such  Corp.  shall  acquire  under 
or  by  virtue  of  the  foreclosure  of  any  deed 
of  trust,  Mtg.  or  other  security,  or  by  the 
compromise,  compounding  or  settlement  of 
any  obligation  or  security,  or  otherwise,  in 
the  course  of  its  legitimate  business,  whether 
as  owner  or  trustee,  it  may  continue  to  own, 
hold,  use,  occupy,  lease,  bargain,  sell  and 
convey  the  same,  as  the  directors  may  deem 
best  for  the  interests  of  such  Co.,  or  of  the 
particular  estate  or  trust  to  which  the  same 
belongs;  and  to  that  end  it  may  become  a 
purchaser  at  any  foreclosure  sale,  or  sale 
under  decree  or  judgment,  to  which  it  is  a 
party  as  trustee  or  otherwise,  but  no  part 
of  its  capital,  accumulations,  deposits,  trusts, 
funds,  property  or  securities  owned  or  held 
by  such  Co.  in  trust,  or  otherwise,  shall  be 
invested  in  real  estate,  except  as  herein 
authorized,  unless  the  same  is  done  under 
and  by  virtue  of  a particular  contract,  agree- 
ment or  other  instrument,  which  shall  confer 
a special  power  and  authority  so  to  do,  and 
then  only  with,  and  to  the  extent  of,  the 
moneys  or  funds  thereby  provided  and  be- 
longing to  such  particular  trust;  and  for 
the  general  transaction  of  its  business  to 

5 


INDIANA.  Loan,  Trust  and  Safe  Deposit  Companies. 

make  and  deliver,  and  in  like  manner  to  ac- 
cept and  receive,  all  necessary  and  proper 
deeds,  conveyances,  Mtgs.,  leases  and  other 
contracts  and  writings  obligatory,  and  to  have 
and  exercise  all  necessary  rights,  franchises, 
muniments,  estate  powers  and  privileges  nec- 
essary to  that  end,  and  such  Corp.  is  author- 
ized to  loan  money  and  funds,  and  secure 
such  loan  by  Mtg. ; and  shall  have  power 
to  sell  and  aissign  such  Mtgs.  and  other 
securities  of  such  Corp.,  and  to  convert  them 
into  cash  or  other  securities. 

6th.  The  directors  of  any  such  Corp.  shall 
have  discretionary  power  to  invest  all  moneys 
received  by  it  on  deposit  or  in  trust  in  any 
such  personal  securities  as  are  not  herein- 
after expressly  prohibited ; and  it  shall  be 
held  responsible  for  the  owners,  or  cestui 
que  trust,  of  such  moneys,  for  the  validity, 
regularity,  quality,  value  and  genuineness  of 
all  such  investments  and  securities  at  the 
time  the  said  investments  are  so  made,  and 
for  the  safe  keeping  of  the  evidences  and 
securities  thereof,  but  if  any  special  direc- 
tion, agreement  or  trust  is  imposed  upon, 
made  or  conferred  in  and  by  the  order, 
judgment  or  decree  of  any  court,  or  by  the 
terms  and  conditions  of  any  last  will  and 
testament,  or  other  document,  contract,  deed, 
conveyance  or  other  written  instrument,  as  to 
the  particular  manner  in  which,  or  the  partic- 
ular class  or  kind  of  securities,  funds  or 
property,  whether  real  or  personal,  the  same 
shall  be  invested  in,  then  the  said  Corp.  shall 
follow  and  carry  out  such  order,  judgment, 
decree  or  other  appointment,  contract,  deed, 
conveyance  or  other  written  instrument,  and 
in  such  case  such  company  shall  not  be  held 
liable  or  responsible  for  any  loss,  damage 
or  injury  which  may  occur  or  be  incurred  by 
any  person  or  cestui  que  trust  by  reason  of  IjP 
its  performance  of  such  trust  as  aforesaid. 

Sec.  13.  No  such  Corp.  shall  engage  in  any 
banking,  mercantile,  manufacturing  or  other 
business,  except  such  as  is  hereby  expressly 
authorized  : Provided,  That  any  promissory 
note,  bond  or  instrument  in  writing  made 


6 


Loan,  Trust  and  Safe  Deposit  Companies.  INDIANA. 


negotiable  by  the  laws  of  this  state,  when 
payable  at  a Bk.  within  this  state,  shall  in 
like  manner  be  negotiable  if  made  payable 
at  the  office  of  any  such  Corp.,  it  shall  not 
loan  its  funds,  moneys,  capital,  trust  funds, 
or  other  property  whatsoever,  to  any  director, 
agent  or  employee,  thereof,  nor  shall  any 
such  director,  officer,  agent  or  employee  be- 
come in  any  manner  indebted  to  said  Corp. 
by  means  of  any  overdraft,  promissory  note, 
account,  endorsement,  guaranty,  or  other 
contract  whatsoever. 

Sec.  13  a.  Be  it  enacted  by  the  general  as- 
sembly of  the  state  of  Ind.,  that  it  shall  be 
unlawful  for  any  * * * Tr.  and  Dep.  Co.  in- 
corporated under  and  pursuant  to  the  laws 
of  this  state,  to  loan  any  of  its  funds,  moneys, 
capital  or  other  property  whatsoever  to  any 
director  or  officer  thereof. 

(Acts  1899,  p.  158.) 


Savings  Banks. 


IOWA. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


IOWA. 


SAVINGS  BANKS. 


Chapter  io. 

As  amended  1913  Session 

Sec.  1850.  Each  Sav.  Bk.  shall  invest  its 
funds  or  capital,  all  moneys  deposited  therein 
and  all  its  gains  and  profits,  only  as  follows : 

1st.  In  bonds  or  interest-bearing  notes  or 
certificates  of  the  United  States. 

2nd.  In  bonds  or  evidences  of  debt  of  this 
State,  bearing  interest. 

3rd.  In  bonds  or  warrants  of  any  city,  town, 
county,  Sch.  Dist.  or  Drainage  Dist.  of  this 
State,  issued  pursuant  to  the  authority  of  law  ; 
but  not  exceeding  25%  of  the  assets  of  the 
bank  shall  consist  of  such  bonds  or  warrants. 

4th.  In  notes  or  bonds  secured  by  mortgage 
or  deed  of  trust  upon  unincumbered  real  estate 
located  in  Iowa  or  adjoining  States,  worth  at 
least  twice  the  amount  loaned  thereon;  pro- 
vided, however,  that  no  such  loan  shall  be 
made  upon  any  real  estate  located  outside  of 
Iowa,  except  real  estate  situated  in  any  county 
adjoining  the  Iowa  State  line. 

5th.  It  may  discount,  purchase,  sell  and 
make  loans  upon  commercial  paper,  notes,  bills 
of  exchange,  drafts  or  any  other  personal  or 
public  security,  but  shall  not  purchase,  hold  or 
make  loans  upon  the  shares  of  its  capital  stock. 

6th.  In  all  cases  of  loans  upon  real  estate, 
all  the  expenses  of  searches,  examinations  and 
certificates  of  title,  or  the  inspection  of  prop- 
erty, appraisals  of  value,  and  of  drawing,  per- 
fecting, and  recording  papers,  shall  be  paid  by 
such  borrowers;  if  buildings  are  included  in  the 
valuation  of  real  estate  upon  which  a loan  shall 
be  made,  they  shall  be  insured  by  the  mortgagor 
for  at  least  J^rds  of  their  value,  in  some  sol- 


1 


Savings  Banks. 


vent  Co.,  and  the  loss,  if  any,  under  the  policy 
of  Ins.  shall  be  made  payable  to  the  bank  or  its 
assigns,  as  its  interests  may  appear.  When 
the  mortgagor  neglects  to  procure  the  Ins. 
as  above  provided,  the  mortgagee  may  procure 
the  same  in  the  mortgagor’s  name  for  its 
benefit,  and  the  premium  so  paid  therefor  shall 
be  added  to  the  Mtg.  debt. 

Sec.  1851.  A Sav.  bank  may  purchase,  hold 
and  convey  real  estate  only  as  follows : 

1st.  The  lot  and  building  in  which  its  busi- 
ness is  carried  on. 

2nd.  Such  as  shall  have  been  purchased  at 
sales  upon  foreclosure  of  mortgages  owned  by 
it,  or  upon  judgments  or  decrees  obtained  or 
rendered  for  debts  due  it,  or  such  as  shall  be 
conveyed  to  it  in  satisfaction  of  debts  pre- 
viously contracted  in  the  course  of  its  dealings, 
or  such  as  it  may  obtain  by  redemption  as 
junior  mortgagee  or  judgment  creditor,  and 
which  shall  be  sold  by  said  bank  within  10 
years  after  the  title  shall  be  vested  in  it. 

Chapter  12. 

Sec.  1869.  ...  No  officer  or  employee  of 
the  bank  shall  in  any  manner,  directly  or  indi- 
rectly, use  its  funds  or  deposits,  or  any  part 
thereof,  except  for  the  regular  business  trans- 
actions of  the  bank,  and  no  loan  shall  be  made 
by  it  to  them  except  upon  the  express  order  of 
the  board  of  directors,  made  in  the  absence  of 
the  applicant,  duly  entered  in  the  records  of  the 
board  proceedings,  and  only  upon  the  same 
security  as  required  of  others.  . . . 

Sec.  1870.  The  total  liabilities  to  any  Sav. 
or  State  bank  of  any  person,  Corp.,  Co.  or 
firm,  for  money  borrowed,  including  in  the  lia- 
bilities of  a Co.  or  firm  the  liabilities  of  the 
several  members  thereof,  shall  at  no  time  ex- 
ceed 20%  of  the  actually-paid  up  capital  of 
such  bank;  provided  that  they  may  loan  not 
to  exceed  J4  of  their  capital  stock  to  any  per- 
son, Corp.,  Co.  or  firm  on  notes  or  bonds 
secured  by  Mtg.  or  deed  or  trust  upon  unin- 


2 


State  Banks,  Loan  and  Trust  Companies. 


cumbered  farm  land  in  this  State,  worth  at 
least  twice  the  amount  loaned  thereon;  but 
the  discount  of  bona  fide  bills  of  exchange 
drawn  against  actually  existing  value,  and  the 
discount  of  commercial  or  business  paper  act- 
ually owned  by  the  person  or  persons,  Corp., 
Co.  or  firm  negotiating  the  same,  shall  not 
be  considered  money  so  borrowed. 

STATE  BANKS. 

See  Sections  1869  and  1870,  Chapter  12,  un- 
der Savings  Banks,  which  apply  to  State  Banks. 

LOAN  AND  TRUST  COMPANIES. 

Chapter  12. 

Sec.  1889.  . . . No  Corp.  shall  engage  in 
the  banking  business,  receive  deposits,  and 
transact  the  business  generally  done  by  banks, 
unless  it  is  subject  to  and  organized  under 
the  provision  of  this  title,  or  of  the  banking- 
laws  of  the  State  heretofore  existing,  except 
that  Loan  and  Tr.  Cos.  may  receive  time  de- 
posits, subject  to  the  same  limitations  as  are 
now  or  may  hereafter  be  prescribed  for  the 
receiving  of  deposits  by  State  banks,  . . . but 
such  Cos.  shall  be  subject  to  examination, 
regulation  and  control  of  the  Auditor  of  State, 
like  Sav.  and  State  banks.  . . . 


. 


■ 


■ 


' 


' 


\ 


% 


K 


% 


Savings  and  Commercial  Banks. 


Municipal  Law  in  red . Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


KENTUCKY. 

SAVINGS  AND  COMMERCIAL  BANKS. 

Section  579.  Powers;  . . . to  ex- 
ercise, subject  to  law,  such  powers  as 
may  be  necessary  to  carry  on  the  busi- 
ness of  banking  by  discounting  and 
negotiating  notes,  drafts,  bills  of  ex- 
change, and  other  evidences  of  debt, 
and  purchasing  bonds,  . . . buying  and 
selling  exchange,  coin  and  bullion,  and 
lending  money  on  personal  or  real  se- 
curity, as  provided  in  this  article. 

Section  581.  No  bank  shall  take 
as  security  for  any  loan  or  discount  a 
lien  upon  any  part  of  its  capital  stock, 
and  the  same  surety,  both  in  kind  and 
amount,  subject  to  the  provisions  of 
Section  583,  shall  be  required  from 
persons,  stockholders  and  those  not 
stockholders;  nor  shall  any  bank  be 
the  holder  or  purchaser  of  any  part  of 
its  capital  stock ; unless  such  purchase 
shall  be  necessary  to  prevent  loss  upon 
a debt  previously  contracted  in  good 
faith;  . . . 

Section  582.  A bank  . . . may  hold 
such  personal  property  as  has  been 
transferred  to  it  as  collateral  for  the 
payment  of  any  debt,  and  may  acquire 
title  to  and  hold  such  real  estate  as 
may  be  necessary  for  the  transaction 
of  its  legitimate  business,  and  for  a 
period  not  longer  than  five  years  such 
other  real  estate  as  shall  be  conveyed 


Trust  Companies. 


to  it  in  satisfaction  of  debts  previously 
contracted  in  the  course  of  its  busi- 
ness, or  that  it  may  purchase  under  a 
judgment  in  its  favor. 

Section  583.  No  bank  shall  permit  ^ 
any  of  its  stockholders,  or  any  person, 
company  or  firm,  including  in  the  lia- 
bility of  the  company  or  firm  the  lia- 
bility of  the  individual  members 
thereof,  directly  or  indirectly,  to  be- 
come indebted  to  it  in  a sum  exceeding 
twenty  per  cent,  of  its  capital  stock 
actually  paid  in,  and  its  actual  amount 
of  surplus,  unless  such  borrower 
pledge  with  it  good  collateral  security, 
or  execute  to  it  a mortgage  upon  real 
or  personal  estate,  which  at  the  time 
is  of  more  than  the  cash  value  of  such 
loan  or  indebtedness  above  all  other 
incumbrances;  and  if  the  borrower  is 
a director  or  officer  of  such  bank,  he 
shall  not  be  permitted  to  become  in- 
debted to  it  in  excess  of  ten  per  cent 
of  its  paid-up  capital  stock,  without 
securing  the  access  by  the  mortgage 
or  pledge  of  real  or  personal  property 
double  in  value  the  amount  of  such 
access;  and  in  no  event  shall  the  in- 
debtedness of  any  person,  company  or 
firm,  including  in  the  liability  of  the 
company  or  firm  the  liability  of  the  in- 
dividual members  thereof,  exceed 
thirty  per  cent  of  its  paid-up  capital 
and  actual  surplus. 

TRUST  COMPANIES. 

Section  609.  Capital  stock  not 
to  be  taken  as  security.  There  are 


Trust  Companies. 


the  usual  provisions  regarding  this 
which  are  practically  the  same  as  set 
forth  in  Section  581  under  Savings 
and  Commercial  Banks. 

Section  610.  Indebtedness  of 

PERSON  TO HIGHEST  AMOUNT  PER- 

MITTED. There  are  the  usual  provi- 
sions regarding  this  which  are  practi- 
cally the  same  as  set  forth  in  Section 
583  under  Savings  and  Commercial 
banks,  except  that  in  place  of  tzventy 
per  cent,  insert  ten , and  in  the  place 
of  thirty  per  cent.,  insert  twenty. 

Section  612.  No  trust  company 
hereafter  organized  shall  engage  in  a 
banking  business,  or  buy  or  sell  bills 
of  exchange.  It  may  acquire  title  to 
and  hold  such  real  estate  as  may  be 
necessary  for  the  transaction  of  its 
legitimate  business,  and  for  a period 
not  longer  than  five  years  such  other 
real  estate  as  shall  be  conveyed  to  it 
in  satisfaction  of  debts  previously  con- 
tracted in  the  course  of  its  business, 
or  that  it  may  purchase  under  a judg- 
ment in  its  favor;  but  this  shall  not 
prevent  such  corporation  from  hold- 
ing, operating  or  managing  real  estate 
for  other  persons. 

Section  614.  The  capital  stock  of 
a trust  company,  and  the  funds  in  its 
possession,  not  held  in  a fiduciary  ca- 
pacity, may  be  invested  in  such  man- 
ner as  the  directors  deem  prudent  and 
safe;  and  the  funds  held  in  a fiduciary 
capacity  shall  be  invested  under  the 
order  of  court,  or  in  such  manner  as 
may  be  provided  by  law  for  the  in- 


Combined  Banks  and  Trust  Companies. 


vestment  of  other  trust  funds ; and  the 
capital  stock  shall  be  primarily  liable 
for  the  obligations  of  the  corporation 
in  its  fiduciary  capacity. 

COMBINED  BANKS  AND  TRUST  COMPANIES. 

Section  612A.  . . . that  portion  of 
said  act  relating  to  banks  and  banking 
shall  apply  to  and  govern  the  banking 
business  of  corporations  provided  for 
by  this  act,  and  that  portion  thereof 
relating  to  trusts  and  trust  companies 
shall  apply  to  and  govern  their  trust 
business. 


1 


I 


* 


4 


Savings  Banks. 


MAINE. 


Municipal  Law  in  red.  Street  Railway  Law  in 

Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


# 


MAINE 

SAVINGS  BANKS. 


Chap.  48  as  amended  in  1913. 

Sec.  23.  Sav.  Bks.  and  Insts.  for  Sav.  are 
restricted  to  and  hereafter  may  invest  their 
deposits  as  follows : 

1st,  a:  In  the  public  funds  of  the  U.  S.  and 
Dist.  of  Col. 

b : In  the  public  funds  of  any  of  the  New 
Eng.  States  and  of  the  States  of  N.  Y.,  Penn., 
Md.,  Ohio,  Ind,,  Ky.,  Mich.,  Wis.,  Minn.,  Iowa, 
111.,  Mo.,  Kan,  Neb,  Calif,  Ore.  and  Wash. 

2d,  a:  In  the  bonds  of  the  counties,  cities 
and  towns  of  any  of  the  New  England  States. 

b : In  the  bonds  of  cities  and  Dists.  in  the 
States  of  N.  Y,  Penn,  Md,  Ohio,  Ind,  Ky, 
Mich,  Wis,  Minn,  Iowa,  111,  Mo,  Kan,  Neb, 
Calif,  Ore.  and  Wash,  having  a population  of 
75,000  or  more,  when  issued  for  municipal 
purposes  and  which  are  a direct  obligation  on 
all  the  taxable  property  therein. 

c:  In  the  bonds  of  counties  of  20,000  in- 
habitants or  more  in  the  States  of  N.  Y,  Penn, 
Md,  Ohio,  Ind,  Ky,  Mich,  Wis,  Minn,  Iowa, 
111,  Mo,  Kan,  Neb.,  Calif,  Ore.  and  Wash, 
when  issued  for  municipal  purposes,  and  which 
are  a direct  obligation  on  all  the  taxable  prop- 
erty therein,  except  when  issued  in  aid  of 
R.  Rs,  provided , that  the  net  municipal  debt  of 
such  county  does  not  exceed  5%  of  the  last 
preceding  valuation  of  the  property  therein 
for  the  assessment  of  taxes. 

d : In  the  bonds  of  any  city  of  10,000  in- 
habitants or  more  in  the  States  of  N.Y,  Penn.. 
Md,  Ohio,  Ind.,  Ky,  Mich,  Wis,  Minn,  Iowa, 
Bk  111,  Mo,  Kan,  Neb,  Calif,  Ore.  and  Wash, 
™ when  issued  for  municipal  purposes  and  which 
are  a direct  obligation  on  all  the  taxable  prop- 
erty therein,  except  when  issued  in  aid  of 
R.  Rs,  provided,  that  the  net  municipal  debt  of 
such  city  does  not  exceed  5%  of  the  last  pre- 

1 


Savings  Banks. 


ceding  valuation  of  the  property  therein  for  the 
assessment  of  taxes. 

e:  In  the  refunding  bonds  of  counties  and 
cities  above  enumerated  issued  to  take  up  at 
maturity  bonds  which  were  legal  and  constitu- 
tional when  issued,  provided,  that  the  interest 
has  been  fully  paid  on  such  original  bonds  for 
at  least  5 years  last  prior  to  such  refunding; 
provided,  further,  that  such  counties  and  cities 
can  otherwise  meet  the  foregoing  conditions. 

f : In  the  bonds  and  obligations  of  Sch.  Dist. 
boards,  boards  of  education  and  other  corpo- 
rate bodies  within  such  cities,  authorized  to 
issue  bonds  payable  primarily  from  taxes  lev- 
ied on  all  the  taxable  property  in  said  Dist. ; 
provided,  that  the  population  of  the  Dist.  is 
10,000  or  more,  and  the  population  and  as- 
sessed valuation  of  the  Dist.  are  equal  to  at 
least  90%  of  the  population  and  the  assessed 
valuation  of  the  city  within  which  such  Dist.  is 
located;  provided,  further,  that  the  net  munici- 
pal debt  of  such  Dist.  does  not  exceed  5%  of  the 
last  preceding  valuation  of  the  property  therein 
for  the  assessment  of  taxes. 

g:  In  the  bonds  or  obligations  of  any  muni- 
cipal or  quasi  municipal  corporation  of  this 
State,  when  such  securities  are  a direct  obliga- 
tion on  all  the  taxable  property  of  said  cor- 
poration. 

3d,  a : In  the  railroad  bonds  of  this  State, 
b:  In  the  1st  Mtg.  bonds  of  any  completed 
R.  Rs.  of  the  States  of  New  Hamp.,  Vt.,  Mass., 
R.  I.,  Conn.,  N.  Y.,  N.  J.,  Penn.,  Md.,  Ohio, 
Ind.,  Ky.,  Mich.,  Wis.,  Minn.,  Iowa,  111.,  Mo., 
Kan.  and  Neb. 

c:  In  the  1st  Mtg.  bonds  of  the  Central 
Pacific,  Union  Pacific  and  Northern  Pacific 
R.  Rs. 

d:  In  the  Mtg.  bonds  of  any  R.  R.  leased  to 
any  dividend  paying  R.  R.  in  New  Eng.  upon 
terms  guaranteeing  the  payment  of  a regular 
stated  dividend  upon  the  stock  of  such  leased 
road  and  the  interest  on  its  bonds. 

e : Street  R.  R.  Cos.  are  not  R.  R.  Cos.  with- 
in the  meaning  of  the  foregoing  clauses  of 
this  Sec. 


Savings  Banks. 


MAINE. 


* 


f : In  the  bonds  of  St.  R.  Rs.  constructed  in 
this  state  prior  to  Apr.  27,  1895,  and  in  bonds  of 
St.  R.  Rs.  in  this  state  constructed  af,ter:  Said 
date,  and  in  the  1st  Mtg.  bonds  of  any  com- 
pleted St.  R.  R.  in  the  States  of  New  Hamp., 
Vt.,  Mass.,  R.  I.,  Conn.,  N.  Y.,  N.  J.,  Penn., 
Md.,  Ohio,  Ind.,  Ky.,  Mich.,  Wis.,  Minn.,  Iowa, 
111.,  Mo.,  Kan.  and  Neb.;  provided  that  in  the 
case  of  St.  R.  Rs.  constructed  in  this  state 
after  Apr.  27,  1895,  and  in  the  case  of  St. 
R.  Rs.  in  the  states  above  named,  an  amount 
of  capital  stock  equal  to  33 Yz°/o%  of  the  mort- 
gaged debt  shall  have  been  paid  in,  in  cash, 
and  expended  upon  the  road  evidenced  by  a 
certificate  of  the  R.  R;  Commissioners  of  the 
state  where  the  road  is  located,  if  they  have 
jurisdiction  over  such  R.  Rs.,  or  of  the  bank 
examiner  of  this  state,  filed  in  the  office  of  the 
Secy,  of  State  of  this  state,  that  said  percent- 
age has  been  paid  in  and  expended  in  addition 
to  the  amount  of  the  bonded  debt;  provided, 
further,  that  in  lieu  of  the  foregoing  certificate 
such  bonds  may  be  certified  as  legal  for  the 
purpose  hereof,  on  satisfactory  proof  to  the 
bank  examiner  that  annual  dividends  in 
amount  equal  to  5%  per  annum  on  an  amount 
of  capital  stock  equal  to  of  the  bonded  debt 
has  been  earned  and  paid  for  a period  of  5 
years  next  prior  thereto;  and  the  persons  mak- 
ing such  investigation  and  report  may  charge 
and  collect  in  addition  to  any  compensation 
now  provided  by  law  for  their  regular  official 
duties,  a reasonable  compensation  for  such 
service  and  all  expenses  attendant  thereon, 
including  the  employment  of  experts,  the  same 
to  be  paid  by  the  R.  R.  Co.  seeking  to  make  its 
bonds  a legal  investment  under  this  Sec., 
whether  the  same  are  admitted  or  not.  No 
bonds  secured  by  an  open  Mtg.  shall  be  legal 
under  this  Sec.  unless  the  Mtg.  provides  that 
the  total  amount  of  bonds  certified  and  out- 
standing under  it  shall  at  no  time  exceed  75% 
of  the  amount  of  cash  expended  upon  the 
road.  it  . : 1 - .*> 

g:  In  consolidated  or  refunding  , bonds,; 
which  are  of  an  issue  to  retire  the;  entire) 

3 


Savings  Banks. 


funded  debt  under  the  conditions  as  applied 
to  ist  Mtg.  bonds,  in  clauses  b,  c,  and  f,  of  this 
Subdiw,  and  which  are  secured  by  a ist  Mtg. 
on  the  whole  or  any  part  of  the  system.* 

4th : In  the  Mtg.  bonds  of  any  water  Co. 
in  the  New  Eng.  States  actually  engaged  in 
supplying  any  city  or  cities,  town  or  towns, 
village  or  villages,  or  other  municipal  Corps, 
with  water  for  domestic  use  and  for  the  ex- 
tinguishment of  fires,  whenever  such  Co.  is 
earning  more  than  its  fixed  charges  and  inter- 
est on  its  debts  and  its  running  expenses. 

5th : In  bonds  of  any  Corp.  other  than  R.  R. 
and  water  Cos.,  incorporated  under  the  au- 
thority of  this  State,  and  actually  conducting 
in  this  State  the  business  for  which  such  Corp. 
was  created,  which  is  earning  an  amount  in 
excess  of  fixed  charges,  interest  on  its  debts 
and  running  expenses  equivalent  to  5%  per 
annum  on  an  amount  of  capital  stock  equal  to 
y2  of  its  entire  funded  debt. 

6th,  a : In  the  stock  of  any  bank  or  banking 
Asso.  incorporated  under  the  authority  of  the 
State. 

b : In  the  stock  of  any  bank  or  B’k’g  Asso. 
incorporated  under  the  authority  of  the  U.  S., 
if  located  within  the  New  Eng.  States. 

c:  In  the  stock  of  any  R.  R.  Co.  of  this 
State  unencumbered  by  mortgage. 

d : In  the  bonds,  stocks  or  notes  of  any  R.  R. 
in  New  Eng.,  which  has  earned  and  paid  an 
annual  dividend  equivalent  to  5%  on  a capital 
stock  equal  to  ^ of  its  funded  debt  for  a 
period  of  io  years  next  prior  thereto,  and  in 
the  stock  or  notes  of  the  New  York  Central 
and  Hudson  River,  the  Illinois  Central,  the 


* The  following  extract  is  taken  from  a letter  from 
the  Bank  Examiner  of  the  State  of  Maine,  dated  April 
24,  1907: 

“My  . . . construction  of  it  (Clause  g)  is  that 
it  makes  the  consolidated  and  refunding  bonds  of 
steam  railroads  located  in  the  states  mentioned  in 
clauses  ‘b’  and  ‘c,’  and  the  consolidated  and  refund- 
ing bonds  of  street  railroads  located  in  the  states 
and  subject  to  the  conditions  as  to  amount  of  capi- 
tal  stock  paid  in  and  invested,  all  as  provided  in 
cl  ■ legal  investments  for  the  savings  banks. 


Savings  Banks. 


Lake  Shore  and  Michigan  Southern,  and  the 
Pennsylvania  Railroad  Companies. 

e : In  the  stock  of  any  R.  R.  leased  to  any 
dividend  paying  R.  R.  in  New  Eng.  upon  terms 
guaranteeing  the  payment  of  a regular  stated 
dividend  upon  the  stock  of  such  leased  road 
and  the  interest  on  its  bonds. 

f : In  the  stock  of  any  Corp.,  other  than 
R.  R.  and  water  Cos.,  incorporated  under  au- 
thority of  this  State,  and  actually  conducting 
in  this  State  the  business  for  which  such  Corp. 
was  created,  which  earns  and  is  paying  a reg- 
ular dividend  of  not  less  than  5%  a year. 

7th,  a:  In  loans  secured  by  1st  Mtgs.  of 
real  estate  in  this  State  and  New  Hamp.  to 
an  amount  not  exceeding  60%  of  the  value 
of  such  real  estate. 

b : In  notes  with  a pledge  as  collateral  of 
any  funds,  bonds,  notes  or  stocks  which  the 
bank  or  institution  would,  by  this  section,  be 
authorized  to  purchase,  provided  the  market 
value  of  said  collateral  is  equal  to  the  amount 
of  the  loan. 

c : In  notes  with  a pledge  as  collateral  of 
any  savings  bank  deposit  book  issued  by  any 
savings  bank  in  this  State. 

d : In  notes  with  a pledge  as  collateral  of 
such  funds,  bonds,  notes  or  stocks  as  in  the 
judgment  of  the  trustees  it  is  safe  and  for  the 
interest  of  the  bank  to  accept,  to  an  amount 
not  exceeding  75%  of  the  market  value  of 
such  funds,  bonds,  notes  or  stocks. 

e : In  loans  to  any  municipal  Corp.  in  this 
State. 

f : In  loans  secured  by  a mortgage  of  such 
personal  property  as  in  the  judgment  of  the 
trustees  it  is  safe  and  for  the  interest  of  the 
bank  to  accept. 

g:  In  loans  to  any  Corp.  owing  real  estate 
in  this  State  and  actually  conducting  in  this 
State  the  business  for  which  such  Corp.  was 
created. 

8th,  a : The  term  “net  municipal  indebted- 
ness of  counties”  as  used  in  this  section  shall 
be  construed  to  include  all  bonds  w'hich  are  a 
direct  obligation  of  the  county,  less  the  amount 


Savings  Banks. 


of  any  sinking  fund  available  in  reduction  of 
such  debt. 

4 b : The  term  “net  municipal  indebtedness  of 
cities  and  districts’’  as  used  in  this  section  shall 
be  construed  to  include  in  the  case  of  either, 
not  only  all  bonds  which  are  a direct  obliga- 
tion of  the  cities  but  also  all  bonds  of  the  dis- 
tricts or  boards  within  the  same  as  above  enu- 
merated, exclusive  of  any  such  debt  created 
for  a water  supply  and  of  the  amount  of  anv 
sinking  fund  available  in  reduction  of  such 
debt. 

c:  The  number  of  inhabitants  of  cities  and 
counties  shall  be  determined  by  the  last  pre- 
vious official  census  thereof  as  established  by 
the  last  U.  S.  or  State  census,  or  city  or 
county  census  taken  in  the  same  manner  as 
U.  S.  or  State  census,  and  duly  certified  to  by 
the  clerk  or  treasurer  of  such  city  or  the 
auditor  or  treasurer  of  such  county. 

9th : All  investments  having  a fixed  maturity 
shall  be  charged,  and  entered  on  the  books  of 
the  bank  at  their  cost  to  the  bank,  or  at  par 
when  a premium  is  paid.  The  Bk.  Examiner 
may  require  any  investment  to  be  charged 
down  to  such  sum  as  in  his  judgment  repre- 
sents its  fair  value.  He  may  at  any  time  call 
for  a report  of  the  financial  condition  of  any 
Corp.  offering,  or  likely  to  offer,  its  bonds, 
stocks  or  notes  to  any  Sav.  Bk.  in  the  State, 
or  whose  notes  are  held  by  any  such  Sav.  Bk., 
as  much  in  detail  as  he  may  require,  verified 
by  the  oath  of  such  officers  of  said  Corp.  as 
he  may  specify.  He  may  communicate  any 
such  report,  or  an  abstract  thereof,  to  the  of- 
ficers, of  any  of  said  Sav.  Bks.  If  such  re- 
port is  not  furnished  the  Bk.  Ex.  within  the 
time  specified  in  his  call  therefor,  or  within 
such  extension  of  time  as  he  may  grant,  the 
bonds,  stocks  and  notes  of  such  Corp.  shall 
thereupon  cease  to  be  a legal  investment  for 
Sav.  Bks.  under  this  Sec.,  and  shall  not  again 
become  a legal  investment  until  a report  in  all 
respects  satisfactory  to  the  Bk.  Ex.  is  fur- 
nished. . . . 

Sec.  24.  Any  such  bank  or  institution  may 


Trust  Companies. 


hold  real  estate  in  the  city  or  town  in  which 
such  bank  or  institution  is  located,  to  an 
amount  not  exceeding  5%  of  its  deposits  or  to 
an  amount  not  exceeding  its  reserve  fund. 

Sec.  25.  No  such  bank  or  institution  shall 
hold  by  way  of  investment,  or  as  security  for 
loans,  or  both,  more  than  1-5  of  the  capital 
stock  of  any  Corp.,  nor  invest  more  than  10% 
of  its  deposits  in  the  capital  stock,  or  notes  of 
any  Corp.,  nor  have  more  than  50%  of  its  de- 
posits in  Mtgs.  of  real  estate.  This  Sec.  and 
the  two  preceding  do  not  apply  to  real  estate, 
or  other  assets,  acquired  by  the  foreclosure  of 
a Mtg.  thereon,  or  upon  judgment  for  debts, 
or  in  settlements  to  secure  debts.  This  Sec. 
does  not  apply  to  bonds  enumerated  in  the 
first  5 subdivs.  of  Sec.  23  of  this  Chap. 

Sec.  27.  ...  No  loan  shall  be  made  directly 
or  indirectly  to  any  officer  of  the  corporation, 
or  to  any  firm  of  which  such  officer  is  a 
member. 

Sec.  40.  . . . Parties  making  a loan  from  a 
Sav.  Bk.  shall  pay  all  expenses  incurred  by 
reason  thereof. 

TRUST  COMPANIES. 

Sec.  80.  Cash  Reserve.  . . . and  of  said 
15%  may  consist  of  the  bonds  of  the  U.  S., 
the  Dist.  of  Col.,  and  any  of  the  New  Eng. 
States  and  the  States  of  N.  Y.,  Penn.,  Md., 
Ohio,  Ind.,  Ky.,  Mich.,  Wis.,  Minn.,  Iowa,  111., 
Mo.,  Kan.  and  Neb.,  the  absolute  property  of 
such  Corp.  . . . 

Sec.  82.  No  Tr  Co.  shall  make  any  loan 
to  its  directors,  officers,  agents  or  other  per- 
sons in  its  employ,  or  on  which  any  such 
director,  officer,  agent  or  employee  is  an  en- 
dorser, guarantor  or  surety,  or  to  any  firm  or 
business  syndicate  of  which  such  director, 
officer,  agent  or  employee  is  a member,  or  to 
any  person  or  on  the  endorsement  or  guaranty 
of  any  person  who  is  a partner  of,  or  member 
of  a business  syndicate  with,  such  director, 
officer,  agent  or  employee,  or  to  any  Corp.  of 
which  any  such  director,  officer,  agent  or  em- 


MAINE. 


Trust  Companies. 


ployee  is  a director,  officer,  superintendent  or 
manager,  until  the  proposition  to  make  such 
loan  shall  have  been  submitted  by  the  person 
desiring  the  same  to  the  board  of  directors  of 
such  Co.,  or  to  the  executive  committee  there- 
of, if  any,  and  accepted  and  approved  by  a 
majority  of  the  entire  membership  of  such 
board  or  committee;  provided,  however,  that 
no  director  of  such  Co.  who  is  interested  in 
said  loan  in  any  of  the  above  capacities,  or  who 
is  connected  or  associated  with  the  borrower 
in  any  of  the  above  ways,  shall  be  regarded  as 
voting  in  the  affirmative  on  such  loan.  Such 
approval,  if  the  loan  is  made,  shall  be  spread 
upon  the  records  of  the  Co.;  and  this  record 
shall,  in  every  instance,  give  the  names  of  the 
directors  authorizing  the  loans.  Nothing  in 
this  Sec.  or  in  Sec.  1 6 of  this  act  shall  make 
it  unlawful  for  a Tr.  Co.  to  give  any  person, 
firm,  syndicate  or  Corp.  a line  of  credit  to 
an  amount  not  exceeding  25%  of  its  total 
capital,  unimpaired  surplus  and  net  undivided 
profits,  subject  to  the  several  restrictions  as 
to  percentage  of  entire  board  and  right  of 
interested  persons  to  vote  on  same  contained 
in  said  Secs.  The  records  of  the  Co.  shall 
show  how  every  director  voted  on  the  same, 
and  when  such  line  of  credit  is  given  the 
treasurer  may  pay  out  loans  in  accordance 
therewith  without  further  approval.  A line 
of  credit  so  given  shall  expire  in  6 months 
unless  renewed  in  the  same  manner  in  which 
it  is  originally  given. 

Sec.  83.  Such  Corps,  shall  not  make  loans 
or  discounts  on  the  security  of  the  shares  of 
their  own  capital  stock,  nor  be  the  purchasers 
or  holders  of  any  such  shares  unless  neces- 
sary to  prevent  loss  upon  a debt  previously 
contracted  in  good  faith;  . . . 

An  Act  additional  to  and  amendatory  of  Chap.  48  of 

the  Revised  Statutes  of  the  State  of  Maine,  as 
amended,  relating  to  the  organization  and 
management  of  Trust  Companies,  1907 

Sec.  i.  Powers  . . . 2d,  to  borrow  monejr, 
to  loan  money  on  credits,  or  real  estate,  or 


Trust  Companies. 


MAINE. 


personal  security,  and  to  negotiate  loans  and 
sales  for  others;  . . . 4th,  to  hold  and  enjoy 
all  such  estate,  real,  personal  and  mixed  as 
may  be  obtained  by  the  investment  of  its 
capital  stock  or  any  other  moneys  and  funds 
that  may  come  into  its  possession  in  the  course 
of  its  business  and  dealings,  and  the  same  sell, 
grant,  and  dispose  of;  . . . 

Sec.  16.  No  Tr.  Co.  shall  loan  to  any  per- 
son, firm,  business  syndicate,  or  Corp.,  an 
amount  or  amounts,  at  any  time  outstanding 
in  excess  of  10%  of  its  total  capital,  unimpaired 
surplus  and  net  undivided  profits,  except  on 
approval  of  a majority  of  its  entire  invest- 
ment board,  unless  secured  by  collateral,  nor 
in  excess  of  25%  thereof,  except  on  such  ap- 
proval and  secured  by  collateral,  which  in  the 
judgment  of  said  majority  of  said  investment 
board  shall  be  of  a value  equal  to  the  excess 
of  said  loan  above  said  25% ; provided,  that  in 
determining  said  amount  every  person,  firm, 
syndicate  or  Corp.  appearing  on  any  loan  as 
endorser,  guarantor  or  surety,  shall  be  re- 
garded as  an  original  promissor.  But  the  dis- 
count of  bills  of  exchange  drawn  in  good  faith 
against  actually  existing  values,  and  the  dis- 
count of  commercial  or  business  paper  actually 
owned  by  the  person  negotiating  the  same,  shall 
not  be  considered  as  money  borrowed.  Pro- 
vided, however,  that  any  such  Co.  now  having 
loans  outstanding  in  excess  of  any  of  the 
aforesaid  restrictions  may  permit  the  same  to 
be  renewed  from  time  to  time  as  they  mature, 
for  periods  not  exceeding  6 months  each,  if 
an  amount  equal  to  not  less  than  10%  of  every 
loan  so  maturing  shall  have  first  been  paid  in 
in  cash,  and  if  an  equivalent  amount  shall  be 
paid  in  at  the  end  of  every  6 months  on  all 
demand  loans  in  such  aggregate. 


# 


Savings  Banks. 


MASSACHUSETTS. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


MASSACHUSETTS 

SAVINGS  BANKS. 

Corrected  to  and  including  1912  Session. 

Sec.  1.  * * * Whenever  used  in  this  act, 
the  words  “ savings  banks,”  and,  unless  the 
context  otherwise  requires,  the  words 
“ such  corporations  ” ; mean  Sav.  Bks.  and 
Tnsts.  for  Sav.,  incorporated  as  such  in 
this  Commonwealth. 

Sec.  31.  * * * The  board  (of  Invest- 

ment) shall  approve  all  loans  made  by  the 
Corp.,  all  changes  in  the  property  or  se- 
curity pledged  or  the  rates  of  interest 
charged  therefor,  and  all  purchases  or  sales 
of  bonds,  stocks  and  notes,  and  shall  per- 
form such  other  duties  as  the  by-laws 
may  prescribe.  A record  shall  be  made 
at  each  meeting  of  the  transactions  of  the 
board  and  the  names  of  those  present. 
The  members  of  said  board  may  approve 
changes  of  collateral  on  loans  made  un- 
der the  provisions  of  subdiv.  e of  clause 
7th  of  Sec.  68  either  by  a vote  of  said 
board  or  by  signing  a statement  setting 
forth  all  such  changes. 

Sec.  44.  No  president,  treasurer,  mem- 
ber of  a Bd.  of  Inv.  or  officer  of  such 
Corp.  charged  with  the  duty  of  invest- 
ing its  funds  shall  borrow  or  use  any  por- 
tion thereof,  be  surety  for  loans  to  others 
or,  directly  or  indirectly,  whether  acting 
individually  or  as  trustee  holding  prop- 
erty in  trust  for  another  person,  be  an 
obligor  for  money  borrowed  of  the  Corp.; 
and  if  such  member  or  officer  hereafter, 
either  individually  or  as  trustee  holding 
property  in  trust  for  another  person,  be- 
comes the  owner  of  real  estate  upon  which 
a Mtg.  is  held  by  the  Corp.,  his  office 
shall  become  vacant  at  the  expiration  of 
60  days  thereafter  unless  he  has  ceased  to 


MASSACHUSETTS 


Savings  Banks. 


be  the  owner  thereof  or  has  caused  said 
Mtg..  to  be  discharged  or  assigned.  The 
provisions  of  this  Sec.  shall  not  apply  to 
any  loans  now  held  by  such  Corp.,  or  to 
renewals  thereof,  or  to  the  deposit  of 
money,  as  provided  in  Sec.  68,  in  Bks.  or 
Tr.  Cos.  of  which  one  or  more  trustees 
or  officers  of  such  Corp.  are  directors. 

Sec.  45.  Such  Corp.  or  a person  acting 
in  its  behalf,  shall  not  directly  or  indi- 
rectly negotiate,  . take  or  receive  a fee, 
brokerage,  commission,  gift  or  other  con- 
sideration for  or  on  account  of  a loan 
made  by  or  on  behalf  of  such  Corp.,  other 
than  appears  on  the  face  of  the  note  by 
which  such  loan  purports  to  be  made ; 
but  the  provisions  of  this  Sec.  shall  not 
apply  to  a reasonable  charge  for  services 
in  the  examination  of  real  estate  or  titles, 
and  the  preparation  of  conveyances  to 
such  Corp.  as  security  for  its  loans.  * * * 

Sec.  68.  Deposits  and  the  income  de- 
rived therefrom  shall  be  invested  only  as 
follows : — 

1st.  In  1st  Mtgs.  of  real  estate  situated 
in  this  Commonwealth  not  to  exceed  60% 
of  the  value  of  such  real  estate;  but  not 
more  than  70%  of  the  whole  amount  of 
deposits  shall  be  so  invested.  If  a loan 
is  made  on  unimproved  and  unproduc- 
tive real  estate,  the  amount  loaned  thereon 
shall  not  exceed  40%  of  the  value  of  such 
real  estate.  No  loan  on  Mtg.  shall  be 
made  except  upon  written  application  show- 
ing the  date,  name  of  applicant,  amount 
asked  for  and  security  offered,  nor  ex- 
cept upon  the  report  of  not  less  than  2 
members  of  the  Bd.  of  Inv.  who  shall 
certify  on  said  application,  according  to 
their  best  judgment,  the  value  of  the 
premises  to  be  mortgaged;  and  such  ap- 
plication shall  be  filed  and  preserved  with 
the  records  of  the  Corp. 

At  the  expiration  of  every  such  loan 
made  for  a period  of  5 or  more  yrs.  not 
less  than  2 members  of  the  Bd.  of  Inv. 
shall  certify  in  writing,  according  to  their 


2 


Savings  Banks. 


MASSACHUSETTS. 


best  judgment,  the  value  of  the  premises 
mortgaged;  and  the  premises  shall  be  re- 
valued in  the  same  manner  at  intervals 
of  not  more  than  5 yrs.  so  long  as  they 
are  mortgaged  to  such  Corp.  Such  re- 
port shall  be  filed  and  preserved  with  the 
records  of  the  Corp.  If  such  loan  is 
made  on  demand  or  for  a shorter  period 
than  5 yrs.,  a revaluation  in  the  manner 
above  prescribed  shall  be  made  of  the 
premises  mortgaged  not  later  than  5 yrs. 
after  the  date  of  such  loan  and  at  least 
every  5th  yr.  thereafter.  If  at  the  time 
a revaluation  is  made  the  amount  loaned 
is  in  excess  of  60%,  or  in  the  case  of 
unimproved  and  unproductive  real  estate 
in  excess  of  40%,  of  the  value  of  the 
premises  mortgaged,  a sufficient  reduction 
in  the  amount  of  the  loan  shall  be  re- 
quired, as  promptly  as  may  be  practicable, 
to  bring  the  loan  within  60%,  or  in  the 
case  of  unimproved  and  unproductive  real 
estate  within  40%,  of  the  value  of  said 
premises. 

2d.  a.  In  the  public  funds  of  the  U.  S., 
or  of  any  of  the  New  Eng.  states. 

# b.  In  the  bonds  or  notes  of  a county, 
city  or  town  of  this  Commonwealth. 

c.  In  the  bonds  or  notes  of  an  incor- 
porated Dist.  in  this  commonwealth  whose 
net  debt  does  not  exceed  5%  of  the  last 
preceding  valuation  of  the  property  therein 
for  the  assessment  of  taxes. 

d.  In  the  bonds  or  notes  of  any  city 
of  Maine,  New  Hamp.,  Vt.,  R.  I.  or  Conn., 
whose  net  debt  does  not  exceed  5%  of 
the  last  preceding  valuation  of  the  prop- 
erty therein  for  the  assessment  of  taxes; 
or  of  any  county  or  town  of  said  states 
whose  net  debt  does  not  exceed  3%  of 
such  valuation;  or  of  any  incorporated 
water  Dist.  of  said  states  which  has  within 
its  limits  more  than  5,000  inhabitants,  and 
whose  bonds  or  notes  are  a direct  obliga- 
tion on  all  the  taxable  property  of  such 
Dist,  and  whose  net  debt  does  not  ex- 
ceed 3%  of  such  valuation. 

3 


Savings  Banks. 


e.  In  the  legally  authorized  bonds  of 
the  states  of  N.  Y.,  Penn.,  Ohio,  Ind.,  111., 
Mich.,  Wis.,  Minn.,  Mo.  and  Iowa,  and 
of  the  Dist.  of  Col.,  and  in  the  legally 
authorized  bonds  for  municipal  purposes, 
and  in  the  refunding  bonds  issued  to  take 
up  at  maturity  bonds  which  have  been 
issued  for  other  than  municipal  purposes, 
but  on  which  the  int.  has  been  fully  paid,  of 
any  city  of  the  aforesaid  states  which  has  at 
the  date  of  such  investment  more  than 
30,000  inhabitants,  as  established  by  the  last 
Nat.  or  state  census,  or  city  census  certified 
to  by  the  city  clerk  or  Treas.  of  said  city 
and  taken  in  the  same  manner  as  a national 
or  state  census,  preceding  such  investment, 
and  whose  net  debt  does  not  exceed  5%  of 
the  valuation  of  the  taxable  property  therein, 
to  be  ascertained  by  the  last  preceding  val- 
uation of  property  therein  for  the  assess- 
ment of  taxes. 

/.  In  the  legally  authorized  bonds  of  the 
states  of  Cal.,  Del.,  Neb.,  N.  J.,  Ore.  and 
Wash.,  and  in  the  legally  authorized  bonds 
for  municipal  purposes  or  in  ref’d.  bonds 
which  have  been  issued  for  other  than  muni- 
cipal purposes,  but  on  which  the  interest  has 
been  fully  paid,  of  any  city  of  the  states  of 
Cal.,  Conn.,  Del.,  111.,  Ind.,  Iowa,  Ky.,  Mass., 
Maine,  Md.,  Mich.,  Minn.,  Mo.,  Neb.,  N.  H., 
N.  J.,  N.  Y.,  Ohio,  Ore.,  Penn.,  R.  I.,  Vt., 
Wash,  and  Wis.,  which  has  at  the  date  of 
such  investment  more  than  100,000  inhabit- 
ants, established  in  the  same  manner  as  pro- 
vided in  subdiv.  ( e ) of  this  clause,  and 
whose  net  debt  does  not  exceed  7%  of  the 
valuation  of  the  taxable  property  therein, 
established  and  ascertained  as  provided  in 
subdiv.  ( e ) of  this  clause.  (Clauses  e and 
f take  effect  July  1,  1912.) 

g . In  subdivs.  d,  e and  f of  this  clause 
the  words  “ net  debt”  mean  the  debt  of 
a county,  city,  town  or  Dist,  omitting  debts 
created  for  supplying  the  inhabitants  with 
water  and  debts  created  in  anticipation 
of  taxes  to  be  paid  within  1 yr.,  and  de- 
ducting the  amount  of  sinking  funds  avail- 
able for  the  payment  of  the  debt  included. 


Sayings  Banks. 


MASSACHUSETTS. 


3d.  a.  In  the  bonds  or  notes,  issued  ac- 
cording to  the  laws  of  this  Commonwealth, 
of  a R.  R.  Corp.  incorporated  therein  the 
R.  R.  of  which  is  located  wholly  or  in 
part  therein,  which  has  paid  in  dividends 
in  cash  an  amount  equal  to  not  less  than 
4%  per  annum  on  all  its  outstanding  is? 
sues  of  capital  stock  in  each  fiscal  year,  for 
the  5 yrs.  next  preceding  such  investment, 
or  in  the  1st  Mtg.  bonds  of  a terminal 
Corp.  incorporated  in  this  commonwealth 
and  whose  property  is  situated  therein} 
which  is  owned  and  operated,  or  the  bonds 
of  which  are  guaranteed  as  to  principal 
and  interest,  or  assumed,  by  such  R.  R. 
Corp.  Any  shares  of  the  capital  stock  of 
a R.  R.  Corp.  leased  to  such  R.  R.  Corp., 
which  are  owned  by  said  lessee  Corp.} 
shall  not  be  considered  as  outstanding 
within  the  meaning  of  this  subdiv. 

b.  In  the  bonds  of  a R.  R.  Corp.  incor- 
porated in  any  of  the  New  Eng.  states,  at 
least  Yz  of  the  R.  R.  of  which  is  situated  in 
Said  states,  whether  such  Corp.  is  in  pos- 
session of  and  is  operating  its  own  Toad 
or  is  leased  fco  another  R.  R.  Corp.:  pro- 
vided, either  that  such  bonds  shall  be  se- 
cured by  a 1st  Mtg.  of  the  whole  or  a 
part  of  the  R.  R.  and  R.  R.  property  of 
such  Corp.,  or  that  if  the  R.  R.  and  R.  R. 
property  of  such  Corp.  are  unincumbered 
by  Mtg.  such  bonds  shall  be  issued  under 
the  authority  of  one  of  said  states  which 
provides  by  law  that  no  such  R.  R,  Corp. 
which  has  issued  bonds  shall  subsequently 
execute  a Mtg.  upon  its  road,  equipment 
and  franchise  or  upon  any  of  its  real  or 
personal  property,  without  including  in 
and  securing  by  such  Mtg.  all  bonds  pre- 
viously issued  and  all  its  pre-existing 
debts  and  liabilities,  which  provision,  so 
enacted  in  each  state,  shall  have  been  ac- 
cepted by  the  stockholders  of  such  Corp. ; 
and  provided,  that  such  Corp.  has  paid 
in  dividends  in  cash  an  amount  equal  to 
not  less  than  4%  per  annum  on  all  its  out- 
standing issues'  of  capital,  stock  in  each 


Savings  Banks. 


fiscal  year  for  the  5 yrs.  next  preceding 
such  investment. 

c-  In  the  1st  Mtg.  bonds  of  a R.  R.  Corp. 
incorporated  in  any  of  the  New  Eng. 
states,  the  R.  R.  of  which  is  situated  wholly 
or  in  part  therein,  which  have  been  guar- 
anteed as  to  principal  and  interest  or  as- 
sumed by  a R.  R.  Corp.  described  in 
sttbdivs.  a or  b which  is  in  possession  of 
and  is  operating  its  own  road; 

d.  In  the  Refd.  Mtg.  bonds,  as  de- 
scribed in  subdiv  g,  of  a R.  R.  Corp.  de- 
scribed in  subdiv.  b or  c;  provided that 
no  bonds  shall  be  made  a legal  invest- 
ment by  subdivs.  b,  c or  d unless  the  Corp. 
which  issued,  assumed  or  guaranteed  such 
bonds  has,  during  its  fiscal  year  next  pre- 
ceding the  date  of  such  investment,  paid 
in  dividends  on  its  capital  stock  an  amount 
equal  in  the  case  of  bonds  which  it  has 
issued  or  assumed,  to  T^rd  the  total  amount 
of  interest  paid  on  all  its  direct  and  as- 
sumed funded  debt,  and  in  the  case  of 
bonds  which  it  has  guaranteed,  to  J^rd 
the  total  amount  of  interest  paid  on  all 
its  direct,  assumed  and  guaranteed  funded 
debt. 

e.  In  the  Mtg.  bonds,  as  described  in 
any  of  the  following  subdivs.  of  this 
clause,  of  any  R.  R.  Corp.  incorporated  un- 
der the  laws  of  any  of  the  U.  S. : — 

^ Provided , that  during  each  of  the  10 
fiscal  yrs.  of  such  R.  R.  Corp.  next  pre- 
ceding the  date  of  such  investment,  — 

(1)  Such  R.  R.  Corp.  owned  in  fee  not 
less  than  500  miles  of  standard  gauge 
R R.v  exclusive  of  sidings,  within  the 
U.  S.,  or  if  such  Corp.  owned  in  fee  less 
than  500  miles  of  such  R.  R.,  the  gross 
earnings  of  such  Corp.,  reckoned  as  here- 
inafter provided,  shall  have  been  not  less 
than  $15,000,000; 

(2)  Such  R„  R.  Corp.  shall  have  paid 
the  matured  principal  and  interest  of  all 
its  Mtg.  debt; 

(3)  Such  R,  R.  Corp.  shall  have  paid 
in  dividends  in  cash  to  its  stockholders 


6 


Savings  Banks. 


MASSACHUSETTS. 


I 


an  amount  equal  to  at  least  4%  upon  all 
its  outstanding  capital  stock; 

(4)  The  gross  earnings  from  the  opera- 
tion of  the  property  of  such  R.  R.  Corp., 
including  therein  the  gross  earnings  of  all 
R.  Rs.  leased  and  operated  or  controlled 
and  operated  by  said  Corp.,  and  the  gross 
earnings  from  the  sale  of  coal  from  mines 
owned  or  controlled  by  it,  shall  not  have 
been  less  in  amount  than  5 times  the 
amount  necessary  to  pay  the  interest  pay- 
able upon  its  entire  outstanding  debt,  the 
rentals  of  all  leased  lines,  and  the  inter- 
est on  all  the  outstanding  debt  of  R.  Rs. 
controlled  and  operated  which  is  not 
owned  by  said  Corp.  after  deducting  from 
said  interest  and  rentals  interest  and  divi- 
dends received  from  the  stocks,  bonds  or 
notes  of  R.  R.  Corps,  not  operated  by 
said  Corp.,  which  have  been  deposited  with 
a trustee  as  the  only  security  to  secure 
the  payment  of  bonds  or  notes  issued  by 
said  Corp.,  but  not  in  excess  of  the  inter- 
est on  said  last-named  bonds  or  notes; 

And  further  provided,  that , — 

(.5)  No  bonds  shall  be  made  a legal  in- 
vestment by  subdiv,  g in  case  the  Mtg. 
securing  the  same  shall  authorize  a total 
issue  of  bonds  which,  together  with  all 
outstanding  prior  debts  of  the  issuing  or 
assuming  Corp.,  including  all  bonds  not 
issued  that  may  legally  be  issued  under 
any  of  its  prior  Mtgs.  or  of  its  assumed 
prior  Mtgs.,  after  deducting  therefrom,  in 
case  of  a Refd.  Mtg.,  the  bonds  reserved 
under  the  provisions  of  said  Mtg.  to  re- 
tire prior  lien  debts  at  maturity,  shall  ex- 
ceed 3 times  the  outstanding  capital  stock 
of  said  Corp.  at  the  date  of  such  invest- 
ment. 

(6)  No  bonds  shall  be  made  a legal  in- 
vestment by  subdiv.  i or  j in  case  the 
Mtg.  securing  the  same  shall  authorize  a 
total  issue  of  bonds  which,  added  to  the 
total  debt  of  the  guaranteeing  Corp.  as  de- 
fined in  paragraph  5,  including  therein  the 
authorized  amount  of  all  previously  guar- 

7 


MASSACHUSETTS 


Savings  Banks. 


anteed  bond  issues,  shall  exceed  3 times 
the  capital  stock  of  such  guaranteeing 
Corp.  outstanding  at  the  date  of  such  in- 
vestment; nor  in  case  at  said  date  the 
total  debt  of  the  Corp.  which  issued  said 
bonds  shall  exceed  3 times  its  outstanding 
capital  stock. 

In  the  case  of  a Mtg.  executed  prior 
to  the  passage  of  this  act,  under  which 
the  total  amount  of  bonds  which  may  be 
issued  is  not  specifically  stated,  the  amount 
of  bonds  outstanding  thereunder  at  the 
date  of  such  investment  shall  be  con- 
sidered, for  the  purposes  of  paragraphs 
5 and  6,  as  the  total  authorized  issue. 

(7)  Any  R.  R.  Corp.  which  is  men- 
tioned in  subdiv.  c of  clause  4th  of  Sec. 
26  of  Chap.  1 13  of  the  Revised  Laws  shall 
be  considered  as  having  complied  with  all 
the  requirements  of  this  subdiv.  preced- 
ing paragraph  5 up  to  and  including  the 
fiscal  yr.  of  said  Corp.  in  which  this  act 
is  passed. 

Definition  of  First  Mortgage. — f.  When- 
ever the  term  “ first  mortgage  ” is  used  in 
the  following  subdivs.,  it  shall  mean,  un- 
less otherwise  qualified,  a 1st  Mtig.  on 
not  less  than  75%  of  the  R.  R.  owned  in 
fee  at  the  date  of  the  Mtg.  by  the  R.  R. 
Corp.  on  the  R.  R.  of  which  said  Mtg. 
is  a lien,  but  in  no  case  on  less  than  too 
continuous  miles  of  standard  gauge  R.  R., 
exclusive  of  sidings:  provided , that, — 

75%  of  the  R.  R.  subject  to  the  lien 
of  said  Mtg.  is  connected ; 

For  5 yrs.  prior  to  the  date  of  invest- 
ment therein  all  the  R.  R.  subject  to  the 
lien  of  said  Mtg.  at  the  date  of  execution 
thereof  has  been  operated  by,  and  its  opera- 
tions included  in,  the  operations  of  the 
R.  R.  Corp.  which  issues,  assumes  or  guar- 
antees said  bonds; 

The  date  of  said  Mtg.  is  at  least  5 yrs. 
prior  to  the  date  of  such  investment ; ex- 
cept that  a 1st  Mtg.  given  in  substitution 
for  and  not  greater  in  amount  than  such  a 
ist  Mtg.,  and  covering  the  same  R.  R.  prop- 


Savings  Banks. 


MASSACHUSETTS. 


erty,  shall  be  considered  to  be  in  accordance 
with  this  requirement. 

Direct  Obligations— g.  Bonds  issued  or 
assumed  by  a R.  R.  Corp.  described  in  sub' 
div.  e,  which  are  secured  by  a Mtg.  which 
was  at  the  date  thereof  or  is  at  the  date  of 
such  investment 

(1)  A ist  Mtg.  on  R.R.  owned  in  fee 
by  the  Corp.  issuing  or  assuming  said 
bonds,  except  that,  if  it  is  not  a ist  Mtg.  on 
75%  of  all  such  R.  R.  owned  in  fee  by  said 
Corp.,  it  shall  be  a 1st  Mtg.  on  at  least  75% 
of  the  R.  R.  subject  to  the  lien  of  said  Mtg. 
at  the  date  thereof;  but  if  any  stocks  or 
bonds  are  deposited  with  the  trustee  of 
said  Mtg.  as  part  security  therefor,  repre- 
senting or  covering  R.R.  mileage  not  owned 
in  fee,  the  bonds  secured  by  said  Mtg.  shall 
not  become  legal  investments  unless  said 
Corp.  owns  in  fee  at  least  75%  of  the  total 
mileage  which  is  subject  to  the  lien  of  said 
Mtg.  and  which  is  represented  or  covered 
by  said  stocks  or  bonds; 

(2)  A 1st  Mtg.,  or  a Mtg.  or  trust  in- 
denture which  is  in  effect  a ist  Mtg.  iipon 
all  the  R.  R.  subject  to  the  lien  of  said  Mtg., 
or  trust  indenture  by  virtue  of  the  irrevo- 
cable pledge  with  the  trustee  thereof  of  an 
entire  issue  or  issues  of  bonds  which  are  a 
ist  lien,  upon  the  R.  R.  of  a R.  R.  Corp. 
which  is  owned  and  operated,  controlled 
and  operated  or  leased  and  operated  by  the 
Corp.  issuing  or  assuming  said  bonds; 

% (3)  A Refd.  Mtg.  which  covers  at;  least 
75%  of  the  R.  R.  owned  in  fee  by  said 
Corp.  at  the  date  of  said  Mtg.  and  provides 
for  the  retirement  of  all  outstanding,  Mtg. 
debts  which  are  a prior  lien  upon  said  R,  R. 
owned  in  fee  and  covered  by  said  Refd. 
Mtg,  at  the  date  thereof;  but  if  any  of  the 
bonds  which  said  Refd.  Mtg.  is  given  to  re- 
fund are  secured  on  a R.R.  not  owned  in 
fee  by  the  Corp.  executing  said  Refd.  Mtg.. 
there  shall  be  conveyed  and  assigned  to  the 
trustee  of  said  Refd.  Mtg.  either 

At  least  75%  of  the  R.  R.  on  which  each 
issue  of  bonds  to  be  refunded  is  secured. 


9 


MASSACHUSETTS 


Savings  Banks. 


free  from  any  Mtg.  lien  except  that  of  the 
Mtg.  or  Mtgs.  securing  the  bonds  to  be  re- 
funded, or 

At  least  75%  of  the  outstanding  bonds  of 
each  issue  which  is  secured  by  a Mtg.  lien 
upon  such  R.  R. ; and  all  of  said  R.  R.  not 
owned  in  fee  which  is  so  subjected  to  the 
lien  of  said  Refd.  Mtg.  shall  be  the  R.  R.  of 
one  or  more  R.  R.  Corps,  which  are  owned 
and  operated,  controlled  and  operated,  or 
leased  and  operated  by  the  Corp.  issuing  or 
assuming  said  Refd.  Mtg.  bonds;  but  in  no 
case  shall  the  bonds  secured  by  said  Refd. 
Mtg.  become  a legal  investment  unless  they 
mature  at  a later  date  than  any  bonds 
which  said  Refd.  Mtg.  is  given  to  refund, 
nor  unless  the  total  mileage  subjected  to 
the  lien  of  said  Refd.  Mtg.  in  accordance 
with  the  requirements  of  this  paragraph  is 
at  least  25%  greater  than  the  mileage  cov- 
ered by  any  one  of  the  Mtgs.  securing 
bonds  which  said  Refd.  Mtg.  is  given  to 
refund. 

(4)  A Mtg.  upon  not  less  than  10%  of 
the  R.  R.,  exclusive  of  sidings,  owned  in 
fee  at  the  date  of  said  Mtg.  by  the  Corp. 
issuing  or  assuming  said  bonds,  but  in  no 
case  on  less  than  500  continuous  miles  of 
standard  gauge  R.  R. : provided , that,— 

Said  Mtg.  is  a 1st  or  2d  lien  upon  not  less 
than  75%  of  the  total  R.  R.  covered  by  said 
Mtg.  at  the  date  thereof,  and  which  pro- 
vides for  the  retirement  of  all  Mtg.  debts 
which  are  a prior  lien  upon  said  R.  R. 
owned  in  fee  and  covered  by  said  Mtg.,  at 
the  date  of  the  execution  thereof ; 

The  bonds  secured  by  said  Mtg.  mature 
at  a later  date  than,  and  cover  a mileage 
at  least  25%  greater  than  is  covered  by, 
any  of  the  bonds  secured  by  a prior  lien 
Mtg.  so  to  be  retired ; 

The  date  of  said  Mtg.  shall  be  at  least 
5 yrs.  prior  to  the  date  of  such  investment. 

Bonds  Underlying  Refd . Mtgs. — h.  Mtg. 
bonds  or  bonds  secured  by  Mtg.  bonds 
which  are  a direct  obligation  of,  or  which 
have  been  assumed,  or  which  have  been 


10 


Savings  Banks. 


MASSACHUSETTS. 


guaranteed  by  endorsement  as  to  J}oth 
principal  and  interest,  by  a R.  R.  Corp. 
whose  Refd.  Mtg.  bonds  are  made  a legal 
investment  under  paragraphs  3 or  4 of  sub- 
div.  g:  provided,  that: — 

Said  bonds  are  prior  to  and  are  to  be  re- 
funded  by  such  Refd*  Mtg. ; 

Said  Refd.  Mtg.  covers  all  the  real  prop- 
erty upon  which  the  Mtg.  securing  said  un- 
derlying bonds  is  a lien ; 

In  the  case  of  bonds  so  guaranteed  or 
assumed,  the  Corp.  issuing  said  bonds  is 
owned  and  operated,  controlled  and  oper- 
ated,  or  leased  and  operated,  by  said  R.  R. 
Corp. 

Guaranteed  Obligations. — i.  Bonds  which 
have  been  guaranteed  by  endorsement  as  to 
both  principal  and  interest  by  a R.  R.  Corp. 
which  has  complied  with  all  the  provisions 
of  subdiv.  e:  provided , that,— 

Said  bonds  are  secured  by  a 1st  Mtg.  on 
the  R.  R.  of  a R.  R.  Corp.  which  is  owned 
and  operated,  controlled  and  operated,  or 
leased  and  operated,  by  the  Corp.  guaran- 
teeing said  bonds; 

In  the  case  of  a leased  R.  R , the  entire 
capital  stock  of  which,  except  shares  quali- 
fying directors,  is  not  owned  by  the  lessee, 
the  rental  includes  an  amount  to  be  paid  to 
the  stockholders  of  said  leased  R.  R.  equal 
to  at  least  4%  per  annum  upon  that  por- 
tion of  the  entire  capital  stock  thereof  out 
standing  which  is  not  owned  by  the  lessee. 

j.  1st  Mtg.  bonds  of  a R.  R.  Corp. 
which  during  each  of  its  10  fiscal  yrs.  next 
preceding  the  date  of  such  investment,  has 
complied  with  all  the  requirements  of  para- 
graphs 2,  3,  and  4 of  subdiv.  e,  provided 
that  said  bonds  are  guaranteed  by  endorse- 
ment as  to  both  principal  and  interest  by  a 
R.  R.  Corp.  which  has  complied  with  all  the 
requirements  of  subdiv.  e preceding  para- 
graph 5,  notwithstanding  that  the  R.  R.  of 
said  issuing  Corp.  is  not  operated  by  said 
guaranteeing  Corp. 

k.  Bonds  which  have  been  or  shall  be- 
come legal  investments  under  any  of 


MASSACHUSETTS 


Savings  Banks. 


the  provisions  of  this  act  shall  not  be 
rendered  illegal  although  the  Corp.  issu- 
ing, assuming  or  guaranteeing  such  bonds 
shall  fail  for  a period  not  exceeding  2 
successive  fiscal  yrs.  to  comply  with  the 
requirements  of  paragraph  4 of  subdiv.  e; 
but  no  further  investment  in  the  bonds 
issued,  assumed  or  guaranteed  by  said 
Corp.  shall  be  made  during  said  period. 
If  after  the  expiration  of  said  period  said 
Corp.  complies  for  the  following  fiscal  yr. 
with  all  the  requirements  of  subdiv.  es  it 
shall  be  regarded  as  having  complied  there- 
with during  said  period. 

/.  Bonds  which  have  been  or  shall  be- 
come legal  investments  under  any  of  the 
provisions  of  this  act  shall  not  be  ren- 
dered illegal,  although  the  property  upon 
which  they  are  secured  has  been  or  shall 
be  conveyed  to  or  legally  acquired  by  an- 
other R.  R.  Corp.,  and  although  the  Corp. 
which  issued  or  assumed  said  bonds  has 
been  or  shall  be  consolidated  with  an- 
other R.  R.  Corp.,  if  the  consolidated  or 
purchasing  Corp.  shall  assume  the  pay- 
ment of  said  bonds  and  so  long  as  it  shall 
continue  to  pay  regularly  interest  or 
dividends,  or  both,  upon  the  securities  is- 
sued against,  in  exchange  for,  or  to  ac- 
quire the  stock  of  the  Corp.  consolidated, 
or  the  property  purchased,  or  upon  se- 
curities subsequently  issued  in  exchange 
or  substitution  therefor,  to  an  amount  at 
least  equal  to  4%  per  annum  upon  the 
capital  stock,  outstanding  at  the  time  of 
such  consolidation  or  purchase,  of  said 
Corp.  which  issued  or  assumed  said  bonds. 

m.  If  a R.  R.  Corp.  which  has  com- 
plied with  all  the  requirements  of  subdiv. 
c preceding  paragraph  5,  except  that  the 
period  of  compliance  is  less  than  10,  but 
not  less  than  5 successive  yrs.,  shall  be, 
or  shall  have  been,  thereupon  consolidated 
or  merged  with,  or  its  R.  R.  purchased 
and  all  of  the  debts  of  such  Corp.  as- 
sumed by,  another  R.  R.  Corp.  incor- 
porated under  the  laws  of  any  of  the 


Savings  Banks. 


MASSACHUSETTS. 


U.  S.,  such  Corp.  so  succeeding  shall  be 
considered  as  having  complied  with  all  the 
provisions  of  subdiv.  e preceding  para- 
graph 5 during  those  successive  yrs.  next 
preceding  the  date  of  such  consolidation, 
merger  or  purchase  in  which  all  said  con- 
solidated, merged  or  purchased  Corp.,  if 
considered  as  one  continuous  Corp.  in 
ownership  and  possession,  would  have  so 
complied : provided , that  said  succeeding 
Corp.  shall  continue  so  to  comply  for  a 
further  period  which  shall  make  such 
compliance  equivalent  to  at  least  10  succes- 
sive yrs.,  but  in  no  case  less  than  the  2 
fiscal' yrs.  next  following  said  consolida- 
tion, merger  or  purchase. 

In  this  act,  unless  the  context  other- 
wise requires,  “ railroad  corporation  ” 
means  a Corp.  which  owns  or  is  in  pos- 
session of  and  operating  a R.  R.  or  Rwy. 
of  the  class  usually  operated  by  steam 
power ; 

ti.  St.  Rwy.  Corps,  are  not  R.  R.  Corps, 
within  the  meaning  of  this  act. 

4th.  The  provisions  of  this  act  shall 
not  render  illegal  the  investment  in  any 
Mtgs.  of  real  estate  held  by  such  Corp.  at 
the  time  of  its  passage,  nor  the  invest- 
ment at  such  time  or  thereafter  in  any 
issue  of  bonds  or  notes  dated  prior  to  its 
passage,  in  which  such  Corp.  was  then 
authorized  to  invest,  so  long  as  such 
bonds  or  notes  continue  to  comply  with 
the  requirements  of  law  then  in  force. 

5th.  In  the  bonds  of  any  St.  Rwy.  Corp. 
incorporated  in  this  Commonwealth,  the 
Rwy.  of  which  is  situated  wholly  or  in 
part  therein,  and  which  has  earned  and 
paid  in  dividends  in  cash  an  amount 
equal  to  at  least  5%  upon  all  its  outstand- 
ing capital  stock  in  each  of  the  5 yrs.  last 
preceding  the  certification  by  the  Bd.  of 
R.  R.  Corns,  hereinafter  provided  for. 
No  such  investment  shall  be  made  unless 
said  Corp.  appears  from  returns  made  by 
it  to  the  Bd.  of  R.  R.  Corns,  to  have 
properly  paid  said  dividends  without  im- 

13 


MASSACHUSETTS 


Savings  Banks. 


isi 


pairment  of  assets  or  capital  stock,  and 
said  Bd.  shall  on  or  before  the  15th  day 
of  Jan.  in  each  yr.  certify  and  transmit 
to  the  Bk.  Com.  a list  of  such  St.  Rwy. 
Corps. 

Dividends  paid  by  way  of  rental  to 
stockholders  of  a leased  St.  Rwy.  Corp. 
shall  be  deemed  to  have  been  earned  and 
paid  by  said  Corp.  within  the  meaning 
of  this  clause,  provided  said  Corp.  shall 
have  annually  earned  and  properly  paid 
in  dividends  in  cash,  without  impairment 
of  assets  or  capital  stock,  an  amount 
equal  to  at  least  5%  upon  all  its  outstand- 
ing capital  stock  in  each  of  the  5 fiscal 
yrs.  next  preceding  the  date  of  the  lease 
thereof. 

If  2 or  more  St.  Rwy.  Corps,  have  been 
consolidated  by  purchase  or  otherwise 
during  the  5 yrs.  prior  to  said  certifica- 
tion, the  payment  severally  from  the  earn- 
ings of  each  yr.  of  dividends  equivalent 
in  the  aggregate  to  a dividend  of  5% 
on  the  aggregate  capital  stocks  of  the 
several  Corps,  during  the  yrs.  preceding 
such  consolidation  shall  be  sufficient  for 
the  purpose  of  this  act. 

6th.  In  the  bonds  of  any  Telephone 
Co.  subject  to  the  provisions  of  Sec.  37 
of  Chap.  14  of  the  Revised  Laws,  and 
of  which  a majority  of  the  directors  are 
residents  of  the  Commonwealth : — 

Provided , that  during  each  of  the  5 
fiscal  yrs.  of  such  Tel.  Co.  next  preced- 
ing the  date  of  such  investment  — 

(1)  The  gross  income  of  such  Tel.  Co. 
shall  have  been  not  less  than  $10,000,000 
per  annum. 

(2)  Such  Tel.  Co.  shall  have  paid  the 
matured  principal  and  interest  of  all  its 
indebtedness. 

(3)  Such  Tel.  Co.  shall  have  paid  in 
dividends  in  cash  an  amount  equal  to  not 
less  than  6%  per  annum  on  all  its  out- 
standing issues  of  capital  stock. 

(4)  The  dividends  paid  on  the  capital 
stock  of  such  Tel.  Co.  shall  not  have  been 


14 


Savings  Banks. 


MASSACHUSETTS. 


less  than  the  total  amount  necessary  to 
pay  the  interest  upon  its  entire  outstand- 
ing indebtedness. 

And  further  provided,  that  such  bonds 
shall  be  secured  either  (a)  by  a ist  Mtg. 
upon  at  least  75%  of  the  property  of 
such  Tel.  Co.,  or  ( b ) by  the  deposit  with 
a Tr.  Co.  incorporated  under  the  laws 
of  this  Commonwealth  of  bonds  and  shares 
of  stock  of  other  Tel.  Corps.,  under  an 
indenture  of  Tr.  which  limits  the  amount 
of  bonds  so  secured  to  75%  of  the  value 
of  the  securities  deposited  as  stated  and 
determined  in  said  indenture,  and  pro- 
vided that  during  each  of  the  5 yrs.  next 
preceding  such  investment  the  annual  in- 
terest and  dividends  paid  in  cash  on  the 
securities  deposited  have  amounted  to 
not  less  than  50%  in  excess  of  the  annual 
interest  on  the  bonds  outstanding  and 
secured  by  said  deposit.  Not  more  than 
2%  of  the  deposits  of  any  Sav.  Bk.  shall 
be  invested  in  the  bonds  of  Tel.  Cos.; 

7th.  In  the  stock  of  a banking  associa- 
tion situated  in  the  New  Eng.  states  and 
incorporated  under  the  authority  of  the 
U.  S.,  or  in  the  stock  of  a Tr.  Co.  in- 
corporated under  the  laws  of  and  doing 
business  within  this  Commonwealth ; but 
such  Corp.  shall  not  hold,  both  by  way 

of  investment  and  as  security  for  loans, 
more  than  20%  of  its  deposits  in  the 

stock  of  such  associations  or  Cos.,  nor 
in  any  one  such  association  or  Co.  more 
than  3 % of  its  deposits  in,  nor  more 

than  $100,000  nor  more  than  J4th  of  the 
capital  stock  of,  such  association  or  Co. 
Such  Corp.  may  deposit  not  more  than 

2j4%  of  its  deposits  in  any  banking  asso- 
ciation incorporated  under  the  authority 
of  the  U.  S.  and  situated  in  this  Com- 
monwealth, and  in  any  Tr.  Co.,  incor- 
porated in  this  Commonwealth;  but  such 
deposit  shall  not  in  any  case  exceed 
$500,000  nor  25%  of  the  capital  stock  and 
surplus  fund  of  such  depositary. 

8th.  In  loans  of  the  classes  hereafter 

16 


MASSACHUSETTS 


Savings  Banks. 


described,  payable  and  to  be  paid  or  re- 
newed at  a time  not  exceeding  i yr.  from 
the  date  thereof ; but  not  more  than  y§rd 
of  the  deposits  and  income  shall  so  be 
invested,  nor  shall  the  total  liabilities  to 
such  Corp.  of  a person,  partnership,  asso- 
ciation or  Corp.  for  money  borrowed  upon 
personal  security,  including  in  the  liabili- 
ties of  a partnership  or  Co.  not  incor- 
porated the  liabilities  of  the  several  mem- 
bers thereof,  exceed  5%  of  such  deposits 
and  income. 

a.  A note  which  is  the  joint  and  sev- 
eral obligation  of  3 or  more  responsi- 
ble citizens  of  this  Commonwealth : pro- 
vided, that  the  total  liabilities  to  such 
Corp.  of  a person,  partnership  or  asso- 
ciation, for  money  borrowed  under  this 
subdiv.,  including  in  the  liabilities  of  a 
partnership  or  Co.  not  incorporated  the 
liabilities  of  the  several  members  thereof, 
shall  not  exceed  1%  of  the  deposits  of 
such  Corp. 

b.  A note,  with  1 or  more  substantial 
sureties  or  endorsers : of  a Corp.  incor- 
porated in  this  Commonwealth ; or  of  a 
manufacturing  Corp.  with  a commission 
house  as  surety  or  endorser,  provided 
that  such  commission  house  is  incorporated 
in  this  Commonwealth,  or  has  an  estab- 
lished place  of  business  and  a partner 
resident  therein ; or  of  an  association  or 
Corp.  at  least  Y>  of  the  real  and  per- 
sonal property  of  which  is  situated  within 
the  New  Eng.  states,  provided  that  at  least 
1 such  surety  or  endorser  shall  be  a citi- 
zen of  or  Corp.  incorporated  in  this 
Commonwealth : provided,  'that  no  such 
loan  shall  be  made  or  renewed  unless 
within  18  Mos.  next  preceding  the  mak- 
ing or  renewing  of  such  loan  an  exami- 
nation of  the  affairs,  assets  and  liabilities 
of  the  borrowing  Corp.  or  association  has 
been  made,  at  the  expense  of  such  bor- 
rowing Corp.  or  association,  by  an  ac- 
countant approved  by  the  commissioner. 
The  report  of  such  examination  shall  be 


16 


Savings  Banks. 


MASSACHUSETTS. 


made  in  such  form  as  the  commissioner 
may  prescribe.  A copy  of  the  report 
certified  to  by  the  accountant  shall  be 
delivered  to  the  said  Corp.  before  such 
loan  or  a renewal  thereof  is  made,  and 
a copy  so  certified  shall  be  delivered  to 
the  commissioner  within  30  days  after 
the  completion  of  said  examination. 

c.  A bond  or  note  of  a gas,  electric 
light,  telephone  or  st  reet  rah  way  Corp.  in- 
corporated or  doing  business  in  this 
Commonwealth  and  subject  to  the  control 
and  supervision  thereof : provided , that  the 
net  earnings  of  such  Corp.,  after  the  pay- 
ment of  all  operating  expenses,  taxes 
and  interest,  as  reported  to,  and  accord- 
ing to  the  requirements  of,  the  proper 
authorities  of  the  Commonwealth,  have 
been  in  each  of  the  3 fiscal  yrs.  next  pre- 
ceding the  making  or  renewing  of  such 
loan  equal  to  not  less  than  4%  on  all  its 
capital  stock  outstanding  in  each  of  said 
years. 

d.  A bond  or  note  of  a R,  R,  Corp. 
which  complies  with  all  the  requirements 
of  subdiv.  b,  or  of  subdiv.  e preceding 
paragraph  5,  of  clause  3rd : provided , that 
the  principal  of  such  bond  or  note  de- 
scribed in  either  this  or  the  preceding 
subdiv.  is  payable  at  a time  not  exceed- 
ing 1 yr.  after  the  date  of  investment 
therein, 

e.  A note  of  a responsible  borrower 
in  such  form  as  the  commissioner  may 
approve,  with  a pledge  as  collateral  of : — 

(1)  1st  Mtgs.  of  real  estate  authorized 
for  investment  by  clause  1st;  or 

(2)  Bonds  or  notes  authorized  for  in- 
vestment by  clauses  2nd,  3rd,  4th,  5th,  or 
6th  at  no  more  than  90%  of  the  market 
value  thereof,  at  any  time  while  such 
note  is  held  by  such  Corp. ; or 

(3)  Deposit  books  of  depositors  in  Sav. 
Bks.  at  no  more  than  90%  of  the  amount 
of  deposits  shown  therein;  or 

(4)  Shares  of  R.  R.  Corps,  described 
in  subdivs.  a,  b or  e of  clause  3rd  at  no 


17 


MASSACHUSETTS 


Savings  Banks. 


more  than  80%  of  the  market  value 
thereof,  at  any  time  while  such  note  is 
held  by  such  Corp. ; or 

(5)  Such  other  bonds,  notes  or  shares 
of  Corps,  or  associations  and  at  such  per- 
centages of  their  market  values  as  the 
Bd.  of  Inv.  shall  approve,  provided,  that, 
if  the  commissioner  shall  disapprove  any 
such  bonds,  notes  or  shares,  he  shall  make 
such  recommendations  in  writing  to  the 
Bd.  of  Inv.  of  such  Corp.  as  the  case 
may  require,  and  shall  include  in  his  an- 
nual report  a statement  of  the  facts  in 
each  case  in  which  such  Bd.  of  Inv.  has 
not  complied  with  his  recommendations  in 
a manner  satisfactory  to  him. 

f.  Whenever  used  in  this  clause,  the 
word  “ association  ” means  an  association 
the  business  of  which  is  conducted  or 
transacted  by  trustees  under  a written  in- 
strument or  declaration  of  trust. 

[Clause  8th  of  Sec.  68th  took  ef- 
fect on  Nov.  1st,  1908,  and  no  loans  on 
personal  security  shall  be  made  or  re- 
newed thereafter  except  under  the  pro- 
visions of  said  clause;  but  for  good  cause 
and  to  prevent  loss  or  embarrassment  to 
such  Corp.,  or  unnecessary  loss  or  injury 
to  a borrower  therefrom,  the  commis- 
sioner may  grant  an  additional  time  within 
which  a loan  may  be  renewed  not  in  ac- 
cordance with  the  provisions  of  said 
clause.] 

9th.  A sum  not  exceeding  the  guaranty 
fund  and  undivided  earnings  of  such  Corp., 
nor  in  any  case  exceeding  5%  of  its  de- 
posits or  $200,000,  may,  subject  to  the  ap- 
proval of  the  commissioner,  be  invested 
in  the  purchase  of  a suitable  site  and  the 
erection  or  preparation  of  a suitable  build- 
ing for  the  convenient  transaction  of  its 
business. 

10th.  Such  Corp.  may  hold  real  estate 
acquired  by  the  foreclosure  of  a Mtg. 
owned  by  it,  or  by  purchase  at  sales  made 
under  the  provisions  of  such  Mtg.  or 
upon  judgments  for  debts  due  to  it,  or 


18 


Savings  Banks. 


MASSACHUSETTS. 


in  settlements  effected  to  secure  such 
debts.  Such  Corp.  shall  sell  all  such  real 
estate  within  5 yrs.  after  the  title  thereof 
is  vested  in  it,  and  notwithstanding  the 
provisions  of  clause  1st  may  take  a Mtg. 
thereon  from  a bona  fide  purchaser  to 
secure  the  whole  or  a part  of  the  pur- 
chase price;  but  the  commissioner  may, 
upon  the  petition  of  the  Bd.  of  Inv.  of 
such  Corp.,  and  for  cause,  grant  an  ad- 
ditional time  for  the  sale  of  the  same 
or  of  the  securities  mentioned  in  the  fol- 
lowing clause. 

nth.  Such  Corp.  may  hold  stocks,  bonds, 
notes,  or  other  securities  acquired  in  set- 
tlements effected  to  secure  loans  or  debt; 
but  unless  the  time  during  which  such 
securities  may  be  held  is  extended  as  pro- 
vided in  the  preceding  clause,  they  shall 
be  sold  within  5 yrs.  after  being  acquired. 

12th.  The  provisions  of  this  act  shall 
not  invalidate  or  impair  the  title  of  a 
Corp.  to  securities  which  have  been  or  may 
be  held  by  it  in  pledge  or  as  security  for 
a loan  or  debt ; and  the  same  shall  be 
held  for  the  purposes  for  which  they  were 
pledged. 

13th.  Not  later  than  the  1st  day  of 
Feb,  in  each  yr.  the  commissioner  shall 
prepare  a list  of  all  the  bonds  and  notes 
which  are  then  legal  investments  under 
the  provisions  of  clauses  3d,  4th,  5th,  and 
6th ; and  said  list  shall  at  all  times  be 
open  to  public  inspection  and  a copy 
thereof  shall  be  sent  to  every  Sav.  Bk. 

Sec.  70.  The  provisions  of  this  act, 
so  far  as  they  are  the  same  as  those  of 
existing  laws,  shall  be  construed  as  a 
continuation  of  such  laws  and  not  as  new 
enactments ; and  the  repeal  by  this  act 
of  any  provision  of  law  shall  not  revive 
any  law  heretofore  repealed  or  super- 
seded ; nor  shall  it  affect  any  act  done, 
liability  incurred,  or  any  right  accrued  and 
established,  or  any  suit  or  prosecution, 
* * 

19 


MASSACHUSETTS. 


Trust  Companies. 


i 


Chapter  561,  Acts  of  1907. 

An  Act  to  permit  Sav.  Bks.  to  estab- 
lish life  insurance  departments. 

Sec.  9.  The  funds  of  the  Ins.  Dept., 
whether  arising  from  premiums,  annuity 
contracts,  guaranty  funds,  or  from  the 
income  thereof,  and  whether  constituting 
Ins.  reserve  or  surplus,  shall  be  invested 
in  the  same  classes  of  securities  and  in 
the  same  manner  in  which  the  deposits 
of  the  Sav.  Dept,  are  or  may  hereafter 
be  required  by  law  to  be  invested,  except 
that  it  may  make  loans  upon  any  policy 
of  Ins.  or  annuity  contract  issued  by  it 
to  the  extent  specified  in  Sec.  15. 

(Then  after  providing  for  General  Ins. 
Guaranty  Fund,  the  law  reads  as  fol- 
lows ;) 

Sec.  20.  The  funds  of  the  General  Ins. 
Guaranty  Fund  shall  be  invested  in  the 
same  classes  of  securities  and  in  the  same 
manner  in  which  the  deposits  of  the  Sav. 
Dept,  are,  or  may  hereafter  by  law  be 
required  to  be  invested;  but  the  trustees 
of  said  fund  shall  be  at  liberty  to  deposit 
in  any  Sav.  Bk.  any  funds  on  hand  which 
by  reason  of  the  smallness  of  the  amount 
or  for  any  other  reason  cannot,  in  the 
opinion  of  the  trustees,  otherwise  properly 
be  invested  at  that  time. 


TRUST  COMPANIES. 

Sec.  1.  Domestic  Tr.  Cos.  incorporated 
subsequent  to  the  28th  day  of  May  in  the 
yr.  1888  shall  be  subject  to  provisions  of 
this  Chap.,  and  any  such  Corp.  chartered 
prior  to  said  date  which  has  adopted  or 
which  Shall  adopt  according  to  law  the 
provisions  of  this  Chap,  or  of  any.  Sec. 
thereof,  or  the  corresponding  provisions 
of  earlier  laws,  shall  be  subject  to  the  pro- 
visions so  adopted;  and  all  such  Corps., 
whenever  incorporated,  shall  be  subject  to 
the  provisions  of  Secs.  14,  15,  and  18 
to  22,  inclusive,  Sec.  24,  so  much  of  Sec. 
37  as  applies  to  Corps,  exercising  the 


20 


Trust  Companies. 


MASSACHUSETTS. 


powers  conferred  by  the  provisions  of 
Sec.  18,  and  Sec.  38;  but  the  provisions  of 
Sec.  24  so  far  as  they  are  inconsistent 
with  the  provisions  of  the  charter  of  a 
Tr.  Co.  incorporated  prior  to  the  28th 
day  of  May  in  the  yr.  1888  shall  not  apply 
to  such  Corp.  in  the  performance  of  its 
duties  as  trustee. 

'Sec.  13.  Such  Corps,  may,  subject  to 
the  limitations  of  the  following  Sec.,  ad- 
vance money  or  credits,  whether  capital  or 
general  deposits,  on  real  property  situated 
within  this  Commonwealth  and  on  per- 
sonal security,  on  terms  that  may  be 
agreed  upon,  and  also  invest  its  money 
or  credits,  whether  capital  or  general  de- 
posits, in  the  stock,  bonds  or  other  evi- 
dences of  debt  of  Corps. 

Sec.  14.  No  Tr.  Co.  shall  advance 
money  or  credits  upon  notes  secured  by 
deed  of  Tr.  or  by  Mtg.  upon  farms  or 
agricultural  or  unimproved  land  outside 
of  this  Commonwealth,  except  upon  land 
situated  in  the  New  Eng.  States  or  the 
State  of  N.  Y.,  nor  invest  in  nor  make 
loans  upon  the  bonds  or  other  securities 
of  a Co.  negotiating  or  dealing  in  such 
notes  so  secured  or  in  such  Mtgs. 

Sec.  15.  No  Tr.  Co.  shall  as  agent,  buy, 
sell  or  negotiate  securities  or  evidences  of 
debt  on  which  said  Co.  may  not  lawfully 
advance  money  or  credits,  nor  as  such 
agent  buy,  sell  or  negotiate  evidences  of 
debts  secured  exclusively  by  real  estate 
under  Mtg.  or  deed  of  trust. 

Sec.  16.  A court  of  law  or  equity,  or 
a court  of  probate  and  insolvency  of  this 
Commonwealth,  may  direct  that  money  or 
property  under  its  control,  or  which  may 
be  paid  into  court  by  parties  to  any  legal 
proceedings,  or  which  may  be  brought 
into  court  by  reason  of  an  order  or  judg- 
ment, be  deposited  with  such  Corp.,  upon 
siich  terms  and  subject  to  such  instruc- 
tions as  the  court  may  prescribe.  * * * 
Such  Corp.  may  also  hold  money  or  prop- 
erty in  trust,  or  on  deposit  from  execu- 


MASSACHUSETTS. 


Trust  Companies. 


tors,  administrators,  assignees,  guardians 
and  trustees,  upon  such  terms  and  condi- 
tions as  may  be  agreed  upon. 

Sec.  i 7.  Money  or  property  received 
under  the  provisions  of  the  preceding  Sec. 
shall  be  loaned  on  or  invested  only  in 
the  authorized  loans  of  the  U.  S.,  or  any 
of  the  New  Eng.  States,  the  counties  or 
cities  thereof,  or  of  the  States  of  111., 
Iowa,  Mich.,  Minn.,  Wis.,  or  the  counties 
or  cities  thereof,  or  stocks  of  State  or 
Nat.  Bks.  organized  within  this  Com- 
monwealth, or  in  the  first  Mtg.  bonds  of  a 
R.  R.  Corp.  incorporated  in  any  of  the 
New  Eng.  States  and  whose  road  is  lo- 
cated wholly  or  in  part  in  the  same  and 
which  has  earned  and  paid  regular  divi- 
dends on  all  its  issues  of  capital  stock 
for  2 yrs.  last  preceding  such  loan  or 
investment,  or  in  the  bonds  of  any  such 
R.  R.  Co.  unencumbered  by  Mtg.,  or  in 
1st  Mtgs.  on  real  estate  in  this  Com- 
monwealth, or  in  any  securities  in  which 
Sav.  }Bks.  may  invest,  or  upon  notes  with 
2 sureties  of  domestic  manufacturing 
Corps,  or  of  individuals  with  a sufficient 
pledge  as  collateral  of  any  of  the  afore- 
said securities ; but  all  real  estate  acquired 
by  foreclosure  of  Mtg.  or  by  levy  of 
execution  shall  be  sold  at  public  auction 
within  2 yrs.  after  such  foreclosure  or 
levy. 

Sec.  18.  Such  Corp.  may  be  appointed 
executor  of  a will,  codicil  or  writing  tes- 
tamentary, administrator  with  the  will  an- 
nexed, administrator  of  the  estate  of  any 
person,  receiver,  assignee,  guardian,  or 
trustee  under  a will  or  instrument  creat- 
ing a trust  for  the  care  and  management 
of  property,  under  the  same  circum- 
stances, in  the  same  manner,  and  subject 
to  the  same  control  by  the  court  hav- 
ing jurisdiction  of  the  same,  as  a legally 
qualified  person.  Any  such  appointment 
as  guardian  shall  apply  to  the  estate  and 
not  to  the  person  of  the  ward.  Such 
Corp.  shall  not  be  required  to  receive  or 


22 


Trust  Companies. 


MASSACHUSETTS. 


hold  property  or  money  or  assume  or 
execute  a trust  under  the  provisions  of 
this  or  of  Sec.  16  without  its  assent. 

Sec.  23.  A person  creating  a trust  may 
direct  whether  money  or  property  depos- 
ited under  it  shall  be  held  and  invested 
separately  or  invested  in  the  general  trust 
fund  of  the  Corp. ; and  such  Corp.  act- 
ing as  trustee  shall  be  governed  by  di- 
rections contained  in  a will  or  instrument 
under  which  it  may  act. 

Sec.  24.  Money,  property  or  securities 
received,  invested  or  loaned  under  the 
provisions  of  Secs.  16  to  18,  inclusive,  shall 
be  a special  deposit  in  such  Corp.,  and 
the  accounts  thereof  shall  be  kept  sep- 
arate. Such  funds  and  the  investment  or 
loans  thereof  shall  be  specially  appro- 
priated to  the  security  and  payment  of 
such  deposits,  shall  not  be  mingled  with 
the  investments  of  the  capital  stock  or 
other  money  or  property  belonging  to  such 
Corp.,  or  be  liable  for  the  debts  or  ob- 
ligations thereof.  For  the  purpose  of  this 
Sec.,  such  Corps,  shall  have  a Tr.  Dept, 
in  which  all  business  authorized  by  said 
Secs.  16  to  18,  inclusive,  shall  be  kept 
separate  and  distinct  from  its  general 
business. 

Sec.  25.  * * * Such  (guaranty)  fund 

shall  be  invested  in  such  securities  only 
as  the  trust  deposits  may  be  invested  in. 
The  accounts  of  its  investment  and  man- 
agement, and  the  securities  in  which  it  is 
invested,  shall  be  kept  in  the  Tr.  Dept. 

Sec.  29.  Every  such  Corp.  chartered 
subsequent  to  the  21st  day  of  May  in  the 
yr.  1896,  after  a deduction  of  all  reason- 
able expenses  and  losses  incurred  during 
the  yr.  in  the  management  thereof,  shall 
annually  set  aside  not  less  than  10%  of 
its  remaining  earnings  as  a guaranty  fund, 
until  such  fund  amounts  to  25%  of  its 
capital,  which  fund  shall  be  invested  in 
the  same  manner  as  deposits  in  Sav.  Bks. 
may  be  invested. 

Sec.  33.  No  such  Corp.  shall  make  a 


MASSACHUSETTS. 


Trust  Companies. 


loan  or  discount  on  the  security  of  the 
shares  of  its  own  capital  stock,  nor  be  the 
purchaser  or  holder  of  such  shares,  un- 
less such  security  or  purchase  shall  be 
necessary  to  prevent  loss  upon  a debt  pre- 
viously contracted  in  good  faith ; and 
stock  so  purchased  or  acquired  shall,  within 
6 Mos.  after  its  purchase,  be  sold  or  dis- 
posed of  at  public  or  private  sale. 

Sec.  34.  The  total  liabilities  of  a per- 
son, other  than  cities  or  towns,  for 
money  borrowed,  including  in  the  liabili- 
ties of  a firm  the  liabilities  of  its  sev- 
eral members,  to  such  Corps,  having  a 
capital  stock  of  $500,000  or  more  shall 
at  no  time  exceed  i-5th  part  of  the  sur- 
plus account  and  of  such  amount  of 
the  capital  stock  as  is  actually  paid  up, 
and  to  any  other  such  Corp.  shall  at  no 
time  exceed  i-5th  of  such  amount  of  the 
capital  stock  of  the  Corp.  as  is  actually 
paid  up;  but  the  discount  of  bills  of  ex- 
change drawn  in  good  faith  against  act- 
ually existing  values,  and  the  discount 
of  commercial  or  business  paper  actually 
owned  by  the  person  negotiating  it,  shall 
not  be  considered  as  money  borrowed. 

Sec.  35.  Such  Corp.  may  hold  real  es- 
tate unencumbered  by  Mtg.  suitable  for 
the  transaction  of  its  business  to  an  amount 
including  the  cost  of  alterations  and  ad- 
ditions in  the  nature  of  permanent  fix- 
tures, not  exceeding  25%  of  its  capital  ac- 
tually paid  in,  and  in  no  case  to  exceed 
$250,000;  but  the  provisions  of  this  Sec. 
shall  not  require  such  Corp.  to  change  an 
investment  legally  made  prior  to  the  18th 
day  of  Apr.  in  the  yr.  1894. 

Sec.  1.  Every  Tr.  Co.  soliciting  or  re- 
ceiving deposits  (a)  which  may  be  with- 
drawn only  on  presentation  of  the  pass- 
book or  other  similar  form  of  receipt 
which  permits  successive  deposits  or 
withdrawals  to  be  entered  thereon ; or 
(b)  which  at  the  option  of  the  Tr.  Co. 
may  be  withdrawn  only  at  the  expiration 
of  a stated  period  after  notice  of  inten- 


24 


Trust  Companies. 


MASSACHUSETTS. 


tion  to  withdraw  has  been  given;  or  (c) 
in  any  other  way  which  might  lead  the 
public  to  believe  that  such  deposits  are 
received  or  invested  under  the  same  con- 
ditions or  in  the  same  manner  as  deposits 
in  Sav.  Bks. ; shall  have  a Sav.  Dept,  in 
which  all  business  relating  to  such  de- 
posits shall  be  transacted. 

Sec.  2.  All  such  deposits  shall  be  spe- 
cial deposits  and  shall  be  placed  in  said 
Sav.  Dept.,  and  all  loans  or  investments 
thereof  shall  be  made  in  accordance  with 
the  statutes  governing  the  investment  of 
deposits  in  Sav.  Bks.  The  duties  of  the 
Bd.  of  Inv.  relative  to  the  investment  of 
such  deposits  shall  be  performed  by  a 
board  or  committee  appointed  by  the  board 
of  directors  of  such  Corp. 

Sec.  3.  Such  deposits  and  the  invest- 
ments or  loans  thereof  shall  be  appro- 

priated solely  to  the  security  and  payment 
of  such  deposits,  and  shall  not  be  min- 
gled with  the  investments  of  the  capital 

stock  or  other  money  or!  property  be- 

longing to  or  controlled  by  such  Corp., 
or  be  liable  for  the  debts  or  obligations 
thereof  until  after  the  deposits  in  said 
Sav.  Dept,  have  been  paid  in  full.  The 
accounts  and  transactions  of  said  Sav. 
Dept,  shall  be  kept  separate  and  distinct 
from  the  general  business  of  the  Corp. 

Sec.  6.  All  Sav.  deposits  which  are  not 
now  invested  in  accordance  with  the  pro- 
visions of  this  act  shall  be  so  invested, 
at  least  i-5th  part  before  the  1st  day  of 
Nov.  in  each  yr.  after  the  passage  of 
this  act,  beginning  with  the  yr.  1909,  and 
all  such  deposits  shall  be  so  invested  be- 
fore the  1st  day  of  Nov.  in  the  yr.  1913. 

Sec.  8.  Every  Tr.  Co.  doing  business 
within  the  Commonwealth  shall  at  all 
times  have  on  hand  as  a reserve  an 
amount  equal  to  at  least  15%  of  the  ag- 
gregate amount  of  its  deposits  exclusive 
of  Sav.  deposits,  and  of  time  deposits  rep- 
resented by  certificates  or  agreements  in 
writing  and  payable  only  at  a stated  time, 

25 


MASSACHUSETTS. 


Trust  Companies. 


but  whenever  such  time  deposits  may  be 
withdrawn  within  30  days  they  shall  be 
subject  to  the  reserve  requirements  of 
this  act;  and  every  Tr.  Co.  doing  busi- 
ness in  the  city  of  Boston  shall  at  all  times 
have  on  hand  as  a reserve  an  amount 
equal  to  at  least  20%  of  the  aggregate 
amount  of  its  deposits  computed  in  the 
same  manner. 

Sec.  9.  Not  less  than  2-5ths  of  such 
reserve  shall  consist  either  of  lawful 
money  of  the  U.  S.,  gold  certificates,  silver 
certificates  or  notes  and  bills  issued  by 
any  lawfully  organized  national  banking 
association,  and  the  remainder  of  such 
reserve  may  consist  of  balances,  payable 
on  demand,  due  from  any  Tr.  Co.  in  the 
city  of  Boston  authorized  to  act  as  re- 
serve agent  as  hereinafter  provided,  or 
from  any  Nat.  banking  Asso.  doing  busi- 
ness either  in  this  Commonwealth  or  in 
the  cities  of  New  York,  Philadelphia,  Chi- 
cago or  Albany;  but  a portion  not  ex- 
ceeding i-5th  of  such  reserve  may  consist 
of  bonds  of  the  U.  S.  or  of  this  Com- 
monwealth. computed  at  their  fair  market 
value,  which  are  the  absolute  property 
and  in  the  possession  of  such  Corp. ; pro- 
vided that  the  aggregate  amount  of  law- 
ful money  of  the  U.  S.,  gold  certificates, 
silver  certificates  and  notes  and  bills  is- 
sued by  any  lawfully  organized  Nat. 
banking  Asso.  held  by  such  Corp.  shall 
at  all  times  be  equal  to  at  least  5%  of 
the  aggregate  amount  of  all  its  time  and 
demand  deposits  exclusive  of  deposits  in 
its  Sav.  Dept. 

Sec.  10.  The  Bk.  Com.  may  authorize 
any  Tr.  Co.  in  the  city  of  Boston  to  act 
as  reserve  agent  for  Tr.  Cos.  doing  busi- 
ness in  this  Commonwealth ; provided, 
however,  that  a Tr.  Co.  shall  not  keep 
any  part  of  its  reserve  in  a Tr.  Co.,  so 
authorized  to  act  as  reserve  agent  with- 
out first  obtaining  the  consent  in  writing 
of  the  Bk.  Com.  Not  less  than  J4  of 
the  reserve  of  such  Tr.  Co.  acting  as  re- 


26 


Trust  Companies. 


MASSACHUSETTS. 


serve  agent  shall  consist  of  lawful  money 
of  the  U.  S.,  gold  certificates,  silver  cer- 
tificates or  notes  and  bills  issued  by  any 
lawfully  organized  Nat.  banking  Asso., 
and  the  remainder  of  such  reserve  may 
consist  of  balances,  payable  on  demand, 
due  from  any  Tr.  Co.  in  the  city  of  Bos- 
ton authorized  to  act  as  reserve  agent 
as  herein  provided,  or  from  any  Nat. 
banking  Asso.  doing  business  either  in  this 
Commonwealth  or  in  the  cities  of  New 
York,  Philadelphia,  Chicago  or  Albany. 

Sec.  ii.  If  the  reserve  of  any  Tr.  Co. 
is  at  any  time  less  than  the  amount  which 
it  is  required  to  keep  on  hand,  such  Tr. 
Co.  shall  not  make  any  new  loans  or  in- 
vestments until  the  required  proportion 
between  the  aggregate  amount  of  its  de- 
posits and  reserve  shall  be  restored. 


Savings  Banks 


MASSACHUSETTS 


COMMONWEALTH  OF  MASSACHUSETTS 
OFFICE  OF  THE  BANK  COMMISSIONER 
BOSTON,  Jan.  20,  1913. 

To  Treasurers  of  Savings  Banks: 

The  following  is  a list  of  bonds  and  notes  which, 
in  the  opinion  of  this  department,  are  now  legal  in- 
vestments under  the  provisions  of  clauses  second , 
third,  fourth , fifth  and  sixth  of  section  68  of  chap- 
ter 590,  Acts  of  1908.  Clause  second , relating  to 
investments  in  public  funds,  has  been  applied  only 
to  those  counties,  cities,  towns  and  districts  which 
appear  to  have  bonds  or  notes  outstanding,  and 
from  which  debt  statements  could  be  obtained. 
Clause  third  is  the  general  law  relating  to  rail- 
road  bonds.  Clause  fourth  provides  that  issues 
which  complied  with  the  old  law  shall  continue, 
under  certain  conditions,  to  be  legal  investments. 
The  banks  may  not  only  continue  to  hold  such 
bonds,  but  may  invest  further  in  them.  In  this  list 
the  bonds  which  do  not  comply  with  clauses  second 
and  third,  but  continue  legal  through  clause  fourth , 
are  printed  in  italics  and  the  reason  in  each  case  is 
explained  in  the  footnotes.  Clause  fifth  relates  to 
investments  in  street  railway  bonds,  and  clause 
sixth  to  investments  in  telephone  company  bonds. 

Investment  in  bonds  or  notes  of  cities,  towns  and 
districts  mentioned  in  the  list  should  not  be  made 
without  further  inquiry,  as  both  their  indebtedness 
and  their  valuations  for  the  assessment  of  taxes 
are  constantly  changing. 

Respectfully  yours, 
AUGUSTUS  L.  THORNDIKE, 

Bank  Commissioner . 


MASSACHUSETTS 


Savings  Banks 


I 

p 


Public  funds  of  the  United  States  and  of  the 


following  States:  — 

California 

Connecticut 

Delaware 

Illinois 

Indiana 

Iowa 

Maine 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Nebraska 


New  Hampshire 

New  Jersey 

New  York 

Ohio 

Oregon 

Pennsylvania 

Rhode  Island 

Vermont 

Washington 

Wisconsin 

District  of  Columbia 


Bonds  or  notes  of  the  following  counties,  cities, 
towns  and  districts  in  New  England:  — 


Maine. 

Counties. 

Androscoggin 

Aroostook 

Kennebec 

Cities. 

Auburn 

Augusta 

Bangor 

Belfast 

Biddeford 

Brewer 

Calais 

East  port 

Ellsworth 

Gardiner 

Hallowell 

Lewiston 

Portland 

Saco 

Westbrook 

T owns. 
Boothbay  Harbor 
Brunswick 
Caribou 
Dexter 

East  Livermore 


Fairfield 

Kennebunk 

Lisbon 

Lubec 

Old  Orchard 

Rumford 

Yarmouth 

W ater  Districts. 
Augusta 

Brunswick  and  Topsham 

Gardiner 

Kennebec 

Kit  ter  y* 

Portland 
Van  Bureri* 

New  Hampshire. 
Counties. 

Belknap 

Coos 

Hillsborough 

Merrimack 

Rockingham 

Cities. 

Berlin 

Concord 

Dover 


* Less  than  5,000  inhabitants  within  the  district, 
therefore  only  bonds  issued  prior  to  June  8,  1908,  are 
legal. 


Savings  Banks 


MASSACHUSETTS 


Keene 

Manchester 

Nashua 

Portsmouth 

Towns . 

Ashland 

Derry 

Gorham 

Haverhill 

Hillsborough 

JafFrey 

Lisbon 

Milford 

Northumberland 

Peterborough 

Plaistow 

Raymond 

Salem 

Walpole 

Water  District . 
North  Conway* 
Vermont. 

Cities. 

Barre 

Burlington 

Montpelier 

Rutland 

St.  Albans 

Vergennes 

T owns . 
Bennington 
Brattleborough 

Massachusetts. 
Bonds  or  notes  of  any 
county,  city,  town  or 
incorporated  districtf 
of  the  Commonwealth 
of  Massachusetts 

Rhode  Island. 
Cities. 

Cranston 


Newport 

Providence 

Woonsockett 

T owns . 
Barrington 
Bristol 
Coventry 
Cumberland 
East  ProvidenceX 
Johnston  § 

LincolnX 
North  Smithfield 
South  Kingstown 
Tiverton 
Warren 
Westerly 

Connecticut. 

County. 

Fairfield 

Cities. 

Ansonia 

Bridgeport 

Danbury 

Derby 

Hartford 

Middletown 

New  Britain 

New  Haven 

New  London 

Norwalk 

Putnam 

Rockville 

Waterburv 

Willimantic 

Towns. 

Brandford 

Brooklyn 

Canton 

Ellington 

Enfield 

Essex 

Fairfield 


* See  preceding  page. 

t This  department  has  been  unable  to  learn  of  any 
incorporated  district  in  Massachusetts  the  net  indebtedness 
of  which  is  in  excess  of  the  limit  prescribed  by  law. 

$ Net  indebtedness,  as  defined  by  new  law,  in  excess  of 
legal  limit,  therefore  only  bonds  issued  prior  to  June  8, 
1908,  are  legal. 

5 Only  those  which  have  been  assumed  by  the  city  of 

Providence. 


MASSACHUSETTS 


Savings  Banks 


Greenwich 

Stafford 

Hampden 

Stamford 

Madison 

Suffield 

Manchester 

Thomaston 

Meriden 

Torrington 

Newtown 

Wallingford 

Norwich 

West  Hartford 

Norfolk 

Winchester 

Plainfield 

Southington 

Windsor 

Legally  authorized  bonds  for  municipal  purposes, 

etc.,  of  the  following  cities  outside  of  New  Eng- 

land : — 

Akron,  O. 

Louisville,  Ky. 

Albany,  N.  Y. 

McKeesport,  Penn. 

Allentown,  Penn. 

Milwaukee,  Wis. 

Altoona,  Penn. 

Minneapolis,  Minn. 

Auburn,  N.  Y. 

Newark,  N.  J. 

Baltimore,  Md. 

Newcastle,  Penn. 

Bay  City,  Mich. 

Niagara  Falls,  N.  Y. 

Buffalo,  N.  Y. 

Oakland,  Cal. 

Canton.  O. 

Omaha,  Neb. 

Cedar  Rapids,  la. 

Paterson,  N.  J. 

Chicago,  111. 

Philadelphia,  Penn. 

Cleveland,  O. 

Pittsburgh,  Penn. 

Columbus,  O. 

Portland,  Ore, 

Davenport,  la. 

Quincy ; 111. 

Dayton,  O. 

Reading,  Penn. 

Decatur,  111. 

Rochester,  N.  Y. 

Des  Moines,  la. 

Rockford,  111. 

Detroit,  Mich. 

St.  Joseph,  Mo. 

Dubuque,  la. 

St.  Louis,  Mo. 

Elmira,  N.  Y. 

St.  Paul,  Minn. 

Evansville,  Ind. 

San  Francisco,  Cal. 

Flint,  Mich. 

Seattle,  Wash. 

Grand  Rapids,  Mich. 

Sioux  City,  la. 

Hamilton,  O. 

South  Bend,  Ind. 

Harrisburg,  Penn. 

Spokane,  Wash. 

Indianapolis,  Ind. 

Springfield,  Mo. 

Jackson,  Mich. 

Springfield,  O. 

Jamestown,  N.  Y. 

Superior,  Wis. 

Jersey  City,  N.  J. 

Syracuse,  N.  Y. 

Johnstown,  Penn. 

Terre  Haute,  Ind. 

Joplin,  Mo. 

Toledo,  O. 

Kalamazoo,  Mich. 

Troy,  N.  Y. 

Kansas  City,  Mo. 

Utica,  N.  Y. 

La  Crosse,  Wis. 

Wilkes-Barre,  Penn. 

Lancaster,  Penn. 

Williamsport,  Penn. 

Lansing,  Mich. 

York,  Penn. 

Lima,  O. 

Los  Angeles,  Cal. 

Youngstown,  O. 

Savings  Banks 


MASSACHUSETTS 


Railroad  Bonds. 


BANGOR  & AROOSTOOK  SYSTEM.*)*, 

Bangor  6r*  Aroostook  R.R.  f,  ist  . .5s 

B.  A.  R.R . Pise.  Div.  f,  If  do  . . 5s 

B.  A.  R.R.  Van  B’n  Ex.  j,  ^f  do  . . 5s 

B.  & A.  R.R.  Medjord  “ f , do  . . 5s 

Ar’st’k  North’ n R.R.  f,  If  • do  . 5s 

No.  M aine  Seaport  R.R. f,  f j ^^^ist 

BOSTON  & MAINE  SYSTEM. 


Boston  & Maine  R.R.  . 

Plain 

• 34s 

do  ... 

do 

• 34s 

do  ... 

do 

• 34s 

do  ... 

do 

. 4s 

do  ... 

do 

. 4JS 

do  ... 

do 

. 4s 

do  ... 

do 

. 4s 

do  ... 

do 

. 4JS 

do  ... 

do 

• 3s 

P’tsm’t^G’t.F’lls  &Conw.R.R. 

ist 

. 44s 

Boston  & Lowell  R.R.  . 

Plain 

. 4s 

do  ... 

do 

. 4s 

do  ... 

do 

. 4s 

do  ... 

do 

. 4s 

do  ... 

do 

. 4s 

do  ... 

do 

• 34s 

do  ... 

do 

• 34s 

do  ... 

do 

• 34s 

do  ... 

do 

. 3$s 

do  ... 

do 

. 4s 

do  . ... 

do 

. 4s 

do  ... 

do 

. 4s 

do  ... 

do 

. 4s 

Conn.  & Passumpsic  Riv.  R.R. 

ist  . 

. 4s 

Concord  & Montreal  R.R.  Cons.  mtg. 

. 4s 

Connecticut  River  R.R.  . . 

Plain 

• 34s 

do  ... 

do 

• 34s 

do  ... 

do 

. 4s 

Worcester,  Nash.  & Roch.  R.R. 

ist 

. 4s 

do 

do 

. 4s 

do 

do 

. 4s 

do 

do 

. 4s 

Concord  & Claremont  R.R. 

ist 

• 44s 

If 

1943 

1943 

1943 

I937 

1947 


1935 


1921 

J923 

1925 

1926 
1929 

*937 

1942 
1944 

1950 

*937 

1913 

1915 

1916 

1917 

1918 

1919 
1921 
1923 

1925 

1926 

1927 

1929 
1932 

*943 

1920 

1921 
1923 

1943 
I9E3 

1930 

1934 

1935 

1914 


t Dividends  paid  for  insufficient  number  of  years. 

H Amount  paid  in  dividends  less  than  one-third  of 
amount  paid  in  interest. 


B 


MASSACHUSETTS 


Savings  Banks 


BOSTON  & MAINE  SYSTEM  — Continued. 


Peterboro’  & Hillsboro  R.R. 

, 

ist 

. 4js 

1917 

Fitchburg  R.R 

. Plain 

. 4js 

I9I4 

do  .... 

. 

do 

. 4s 

1915 

do  .... 

. 

do 

. 4s 

1916 

do  .... 

. 

do 

• 3is 

1920 

do  .... 

do 

. 4s 

1920 

do  .... 

. 

do 

• 3is 

1921 

do  .... 

. 

do 

. 4s 

1925 

do  .... 

. 

do 

. 4s 

1927 

do  .... 

. 

do 

. 4s 

1928 

do  .... 

. 

do 

. 4^s 

1928 

do  .... 

. 

do 

. 4is 

1932 

do  .... 

. 

do 

. 4s 

1937 

Troy  & Boston  R.R. 

. 

ist 

• 7s 

1924 

Vermont  & Mass.  R.R. 

. Plain 

• 3is 

1923 

St.  J’hnsb’ry  & L.  Champ’n  R.R, 

. ist 

• 5s 

1944 

Sullivan  County  R.R.  . 

. 

do 

. 4s 

1924 

Vermont  Valley  R.R. 

• 

do 

. 4is 

1940 

MAINE  CENTRAL  SYSTEM. 

Maine  Central  R.R. 

. Coll,  trust  ss 

1923 

Penobscot  Shore  Line  R.R. 

ist 

. 4s 

1920 

Maine  Shore  Line  R.R. 

do 

. 6s 

1923 

Belfast  & Mooseh’d  Lake  R.R. 

do 

. 4s 

1920 

Dexter  & Newport  R.R. 

do 

. 4s 

1917 

Dexter  & Piscataquis  R.R. 

do 

. 4s 

1929 

European  & N.  Amer.  Ry. 

do 

. 4s 

1933 

Upper  Coos  R.R.  . 

Mort. 

. 4s 

*93° 

do  ... 

Ex.  mtg. 

. 4}s 

1930 

Washington  County  Ry. 

I St 

. 

• 3is 

1954 

Portl’d  & Rumford  Falls  Rv 

Cons. 

. 4s 

1926 

Portland  & Ogdensburg  R.R.  ist  . 

. 4is 

1928 

Somerset  Ry 

do  . 

• 5s 

1917 

do  .... 

ist  Ref’d 

. 4s 

1955 

NEW  YORK,  NEW  HAVEN 

& HARTFORD 

SYSTEM  (see  note). 

N.Y.,N.H.  & Hart.  R.R. 

Deb.  . 

. 4s 

1914 

do 

do 

. 4s 

1947 

do 

do 

• 3is 

1947 

do 

do 

• 3is 

1954 

do 

do 

. 4s 

1955 

do 

Conv.  deb.  3 Js 

1956 

N.Y.,N.H.  &H.R.R.H.R.  & P.C. 

I St 

. 4s 

J954 

Note. — Chapter  463  of  the  Acts  of  1906,  entitled  “An 
Act  relative  to  railroad  corporations  and  street  railway 


p 


Savings  Banks 


MASSACHUSETTS 


N.  Y.,  N.  H.  & H.  SYSTEM  — Concluded. 


Housatonic  R.R.  . 

Cons. 

• 5s 

1937 

N.  Y.,  Prov.  & Boston  R.R. 

General 

. 4s 

1942 

B.  &N.Y.  Air  Line  R.R. 

ist  . 

. 4s 

1955 

Danbury  & Norwalk  R.R. 

Cons.  . 

j 5S  l 
\ 6s  S 

1920 

do 

General 

• 5s 

i92S 

do 

Refunding  4s 

1955 

Naugatuck  R.R.  . 

ist  . 

. 4s 

1954 

do  ... 

Deb.  . 

• 3is 

1930 

N.  H.  & Derby  R.R.  . . 

Cons. 

• 5s 

1918 

Prov.  & Springfield  R.R.  . 

ist  . 

• 5s 

1922 

Prov.  Terminal  Co. 

do 

. 4s 

1956 

Boston  & Providence  R.R. 

Plain  . 

. 4s 

1918 

Holyoke  & Westf’d  R.R.  . 

ist  . 

. 4is 

195 1 

New  England  R.R. 

Cons.  . 

f 4S  1 
\ 5S  1 

[ 1945 

N.  Y.  & N.E.  R.R.  B.  Ter. II  I!  ist  . 

. 4s 

*939 

Norwich  & Worcester  R.R. 

Deb.  . 

. 4s 

1927 

r Plain  . 

. 4s 

1924 

Old  Colony  R.R.  . . . ■< 

do 

do 

. 4s 
. 4s 

1925 

1938 

l do  • 

• 3is 

1932 

Prov.  & Worcester  R.R.  . 

ist  . 

. 4s 

1947 

ATCHISON,  TOPEKA  & SANTA 

. FE  : 

RAIL- 

WAY  SYSTEM. 

Atchison, Top.  & Santa  Fe  Ry.  Gen.  mtg.  4s 

1995 

do.  Tr.  Sh’t  Line  ist  . 

. 4s 

I958 

do  E.  Oklahoma  do 

. 4s 

1928 

Chi.  & St.  Louis  Ry. 

. do  . 

. 6s 

^15 

Chi.,  Santa  Fe  & Cal.  Rv. 

do  . 

• 5S 

1937 

Hutchinson  & South’rn  Ry.  do  . 
San  Francisco  & San  Joaquin 

• 5s 

1928 

Valley  Ry. 

. do  . 

• 5s 

1940 

companies,”  provides,  in  section  66  or  Part  II,  that  “A 
railroad  corporation,  unless  expressly  authorized  by  its 
charter  or  by  special  law,  shall  not  issue  bonds,  coupon 
notes  or  other  evidences  of  indebtedness  payable  at  periods 
of  more  than  twelve  months  after  the  date  thereof  to  an 
amount  which,  including  the  amount  of  all  such  securities 
previously  issued  and  outstanding,  exceeds  in  the  whole 
the  amount  of  its  capital  stock  at  the  time  actually  paid 
in.”  As  the  New  York,  New  Haven  & Hartford  Railroad 
Company  is  a Massachusetts  railroad  corporation,  it  is 
the  opinion  of  the  Attorney-General  that  under  either  the 
old  or  the  new  savings  bank  law  only  those  of  its  issues  of 
bonds,  coupon  notes  and  other  evidences  of  indebtedness 
which,  taken  in  the  order  of  their  issue8  do  not  exceed 
the  amount  of  the  capital  stock  of  the  company  actually 
paid  in,  are  legal  investments  for  Massachusetts  savings 
banks. 

II  ||  Legalized  by  special  act  of  General  Court 
o 


MASSACHUSETTS 


Savings  Banks 


BALTIMORE  & OHIO  SYSTEM, 
altimore  & Ohio  R.R.  . Exten.  . 4s 

Prior  lien  . 3^s 


do 

do 

do 


1st  Mtg. 

S.  W.  Div. 


4s 

3^s 


1935 

1925 

1948 

1925 


CENTRAL  OF  NEW  JERSEY  SYSTEM. 
Central  R.R.  of  New  Jersey  General  . 5s  1987 

CHICAGO  & NORTHWESTERN  SYSTEM. 
Chi.  &Nw.  Ry.  . . . General 

Sinking  Fund 


do 

do 

do 


Cons.  . 
Exten. 

S.  F.  Mtg. 


| S'  } If>87 

. 7S  I9I5 


Cedar  Rap.  &Missou.Riv.R.R.  Mort. 
Northwestern  Union  Ry.  . 1st  . 
Mil.  L.  Shore  & W.  Ry.  . Cons.  . 

do  MTdEx.  1st  . 

do  Mich.  Div.  do  . 

do  Ashland  Div.  do  . 

do  Ex.  & imp.  Mort.  . 

Wisconsin  Northern  Ry.  . 1st  . 


do 

do 

do 

do 


Winona  & St.  Peter  R.R 
Boyer  Valley  Ry*  . 

Minnesota  & Iowa  Ry. 

Southern  Iowa  Ry* 

Princeton  & Northwestern  Ry.  do 
Peoria  N orthwestern  Ry*  1st 
Mankato  New  Ulm  Ry*  do 
Frem’t,  Elk.  & Mo.  V.  R.R.  Cons. 

M innesota  S.  Dakota  Ry*  1st 
Iowa,  Minn.  & N’  hw’rn  Ry.  do 
Sioux  City  & Pacific  R.R.  do 
Manitowoc,  Green  Bay  & 

Northwestern  Ry.  . . do  . 3^s  1941 

CHICAGO,  BURLINGTON  & QUINCY 
SYSTEM. 

Chic.,  Burl.  & Quincy  R.R.  General 


4s 

5s  l 

6s  $ 

. 7s 
. 7s 
. 6s 

• 5s 
. 6s 
. 6s 

• 5s 

. 4s 

• 7s 

• 3 4s  1923 

• 3 is  1924 

• 34s  1925 

. 3§s  1926 

. 3is  1926 

• 34s  1929 

• 6s  1933 

• 34s  1935 

• 34s  1935 

• 34s  1936 


1926 

1929 

1916 

1917 

1921 

1922 

1924 

1925 

I929 

I93I 

1916 


4s 


& 0.  R.R.  111.  Div.  . 

Mort.  . 

\ 34s  l 

Us  l 
} 5s  i 
. 4s 

do 

Iowa  Div. 

do 

do 

Denver  Ex. 

do 

Neb.  Ex. 

Mort. 

. 4s 

I958 

*949 

1919 

1922 

1927 


* Secured  on  less  than  100  miles  of  railroad 
H 


Savings  Banks 


MASSACHUSETTS 


CHICAGO,  BURLINGTON  & QUINCY 
SYSTEM — Concluded. 

Burl.  & Mo.Riv.  R.R.  in  Neb.  Cons.  . 6s  1918 

Republican  Valley  R.R.  . Mort.  . 6s  1919 

Tarkio  Valley  R.R.  . . 1st  . . 7s  1920 

Nodaway  Valley  R.R.  . do  .7s  1920 


CHICAGO, 


MILWAUKEE 

SYSTEM. 


& ST.  PAUL 


Chi.,  Mil.  & St.  Paul  Ry.  . General 
C.  M.  & S.  P.  Ry.L’C.  &D.  Div.  1st 


do 

Dubuque 

<< 

do 

do 

Wis.  Val. 

<< 

do 

do 

C.  &P.W. 

u 

do 

do 

W.  & M. 

u 

do 

do 

C.  & L.  S. 

ll 

do 

do 

C.&M.R. 

(( 

do 

do 

Terminal 

do 

ta  & Great  So’th’n  Ry. 

do 

» & Southern  Ry. 

do 

Milwaukee  & Northern  R.R.  Extension 


j 3is  | 

( 4s  S 

■ 5s 
. 6s 
. 6s 

• 5s 

• 5s 

• 5s 

• 5s 

■ 5s 

■ 5s 
, 6s 

4is 


1989 

1919 

1920 

1920 

1921 
1921 
1921 
1926 
1914 
1916 
1924 

1913 


CHICAGO,  ROCK  ISLAND  & PACIFIC 
SYSTEM. 

Chi.,  R.  I.  & Pacific  R.R.  Mort.  . 6s  1917 

do  Ry.  . General  . 4s  1988 

CHICAGO,  ST.  PAUL,  MINNEAPOLIS  & 
OMAHA  SYSTEM. 

Ch.,  St.  P.,  Min.  & Omaha  Ry.  Cons  j | 1930 

Ch.,  St.  Paul  &Min.  Ry.  . . 1st  . 6s  1918 

North  Wisconsin  Ry  . do  . 6s  1930 

St.  Paul  & Sioux  City  R.R.  . do  . 6s  1919 

DELAWARE  & HUDSON  SYSTEM. 


Dela.  & Hud.  Co 1st  ref’d 

do  Canal  Co.  . do 

Adirondack  Ry do 

Schen’y  & Duanesb’g  R.R.  . do 
Albany  & Susquehanna  R.R.  Conv.  . 


4s 

7s 

4^s 
6s 
3*  s 


1943 

1917 

1942 

1924 

1946 


6s  1921 


DELAWARE,  LACKAWANNA  & WESTERN 
SYSTEM. 

N.  Y.  Lack.  &>  W’n  Ry.  § . 1st 

GREAT  NORTHERN  SYSTEM. 

Great  Northern  Ry.  . . 1st  Ref’d  4fs 

Minneapolis  Union  Ry.  . 1st 


IS} 


1961 


1922 


§ Not  guaranteed  by  endorsement. 

1 


MASSACHUSETTS 


Savings  Banks 


GREAT  NORTHERN  SYSTEM— Concluded. 


St.  Paul,  Minn.  & Man.  Ry. 

Cons. 

. 

4s 

1933 

do 

do  . 

. 

4is 

1933 

do 

do  . 

. 

6s 

1933 

do 

Mont.  Ex. 

4s 

*937 

do 

Pac.  Ex. 

. 

4s 

1940 

Eastern  Ry.  of  Minnesota 

No.  Div. 

. 

4s 

1948 

Montana  Central  Ry.  . 

1st 

. . 

. 

5s 

1937 

do  ... 

do 

. 

. 

6s 

1937 

Wilmar  & Sioux  Falls  Ry. 

do 

. 

. 

5s 

1938 

Spokane  Falls  & No.  Ry. 

do 

• 

• 

6s 

1939 

ILLINOIS  CENTRAL  SYSTEM. 

Illinois  Cent.  R.R. 

Ref  d mtg.4S 

1955 

do  Sterling  Ex. 

. 

4s 

195 1 

do  Gold  Ex. 

. 

34s 

1950 

do  Sterling 

. 

3s 

1951 

do  Gold  . 

. 

4s 

I951 

do  Gold  . 

. 

34s 

195 1 

do  Gold  Ex. 

. 

3ls 

1951 

111.  Cen.  R.R.  Spring.  Div. 

1st  . 

. 

34s 

1951 

do  Kan.  & S.W.R.R.  do  . 

. 

5s 

1921 

111.  Cen.  R.R.  Cairo  Bridge 

. 

do  . 

i 

4s 

\ 

1950 

do  St.  Louis  Div. 

• 

do  . 

1 

3s 

34s  J 

I951 

do  Pur.  Lines  . 

. 

do  . 

. 

34s 

1952 

do  Collat.  Trust. 

. 

do  . 

. 

34s 

I95° 

do  Western  Lines\ 

do  . 

. 

4s 

195 1 

do  Louisville  Div.% 

do  . 

. 

34s 

1953 

do  Omaha  Div.% 

. 

do  . 

. 

3s 

I95i 

do  Litchfield  Div* 

. 

do  . 

. 

3s 

i95i 

do  Collat . Trusty 

. 

. 

4s 

1952 

LAKE  SHORE  & MICHIGAN  SOUTHERN 
SYSTEM. 

Lake  Shore  & Mich.  S.  Ry.  istgen.  . 3$s  1997 

Kal.,Alle.&Gr.Rap.R.R*  1st  . 5s  1938 

Mahoning  Coal  R.R*  ...  do  . 5s  *934 

P.McK.  Youghiogheny  R.R.*do  . 6s  1932 


* Secured  on  less  than  100  miles  of  railroad. 
t Bonds  do  not  cover  75  per  cent,  of  the  railroad  owned 
in  fee  at  the  date  of  the  mortgage  by  the  railroad  cor- 
poration  on  the  railroad  of  which  the  mortgage  is  a lien. 

||  Railroad  covered  by  one  of  the  issues  pledged  as 
collateral  is  not  operated  by  Illinois  Central  R.  R. 


J 


Savings  Banks 


MASSACHUSETTS 


LOUISVILLE  & NASHVILLE  SYSTEM. 
Louisville  & Nashville  R.R.  Unified  . 4s  *94° 

do  General  . 6s  1930 

do  ist  . 5s  1937 

do  Trust  . 5®  J93t 

Ev’sville,Hend.  & Nash.  Div.  S.  Fund  . 6s  1919 

Louisville,  Cin.  & Lex.  Ry.  General  . 4$s  1931 

Southeast  & St.  Louis  Div 6s  1921 

Mobile  & Montgomery 4jS  1945 

N.  O.  & Mobile  Div.  $5,000,000  1st  . . 6s  1930 

MICHIGAN  CENTRAL  SYSTEM. 

Mich.  Cen.  R.R 1st  . ■ . 3Js  195* 

Mich.  Cen-Mich.  Air  Line  R.R.  do  . .4s  *94° 

Mich.  Cen.  Dt.  & Bay  Cv.  R.R.  do  . .5s  1931 

Mich.Cen-Kal,  &*  S.  H.  R.R.*  do  . .5s  1939 

Mich.  C.  Jack.  L.  & Sag.  R.R.  do  . . 3Js  1951 

Mich.C-Jol.  b*  Nor.  Ind.  R.R.*  do  . .4s  1957 


NEW  YORK  CENTRAL  SYSTEM. 


N.  Y.  Cen.  & Hud.  Riv.  R.R. 

Mort. 

. 3 4s 

1997 

Beech  Creek  R.R 

ist 

. 4s 

1936 

Mohawk  & Malone  Ry.  . 

do 

. 4s 

1991 

N.  Y.  & Harlem  R.R.  § . 

Mort. 

s?) 

2000 

Rome,W.&Og.R.R.§  . . 

Cons. 

(So 

1922 

do  Ter.  R.R.  § . 

ist 

• 5s 

1918 

Norwood  & Mon . R.R.  § . 

do 

• 5s 

1916 

Oswego  R.R.  Bridge^  . 

do 

. 6s 

1915 

Syr  a.  Phoe.  Oswego  R.R.  § .' 

do 

. 6s 

1915 

Car.,  Wat.  & Sac.  Har . R.R.§ 

Cons. 

• 5s 

1931 

Utica  & Bl.  Riv.  R.R.  § 

ist 

. 4S 

1922 

Boston  & Albany  R.R.  . . 

Plain 

• 3$s 

1952 

do 

do 

. 4S 

*9*3 

do 

do 

• 3£s 

1951 

do  . . 

do 

. 4s 

1933 

do  . . 

do 

. 4S 

1934 

do 

do 

. 4S 

1935 

do 

do 

. 4is 

1937 

NORTHERN  PACIFIC  SYSTEM 

1997 

Northern  Pacific  Ry.  Prior  lien  . 
St.  Paul  & Northern 

. 4s 

Pacific  Ry 

1923 

St.  Paul  & Duluth  R.R.  ist 
Wash.  & Columbia 

• 

• 5s 

I93i 

River  Ry do 

• • 

. 4S 

1935 

* Secured  on  less  than  100  miles  of  railroad. 
{ Not  guaranteed  by  endorsement. 


MASSACHUSETTS 


Savings  Banks 


PENNSYLVANIA  SYSTEM. 


Pennsylvania  R.R. 

Cons. 

5s 

1919 

do  ... 

do 

4s 

1943 

do  ... 

do 

3is 

1945 

do  ... 

do 

4S 

1948 

S unbury  Lewiston  Ry* 

ist 

4S 

1936 

Sunb'y  Hazle.  &°  Wilkes.  Ry  * 

do 

5s 

1928 

WestChester  R.R* 

do 

5s 

1919 

Western  Pennsylvania  R.R.  . 

Cons.  . 

4S 

1928 

Pitts. , Vir.  & Charleston  Ry* 

ist  . 

4s 

19.43 

South  West  Pennsylvania  R.R. 

do 

7s 

I9I7 

Junction  R.R*  . 

General  3^s 

I93° 

c 

' 6s) 

Phil.  & Erie  R.R 

do 

1 5s  f 

1920 

( 

. 4s  ) 

PPb’g, Ports. ,M.  Joy  &L.R.R. * 

ist  . 

4s 

I9I3 

United  N.  J.  R.R.  & Canal  Co.  General 

4S 

J923 

do 

do 

4s 

1929 

do 

do 

4S 

1944 

do 

do 

4s 

1948 

do 

do 

3Js 

1951 

Del.  Riv.  R.R.  fir*  Bridge  Co* 

ist 

4S 

1936 

Erie  6r®  Pittsburgh  R.R*  . 

General 

3 Is 

1940 

Cleveland  & Pittsburgh  R.R. 

do  | 

4is  ) 
3js  ) 

1942 

do 

do  . . 

3is 

1948 

do 

do  . . 

3^s 

1950 

Allegheny  Val.  Ry. . 

do  . 

4s 

1942 

MISCELLANEOUS. 

Boston  Terminal  Co.  ||  || 

ist 

3is 

1947 

Boston  R.B.and  L.  R.R. f . 

do 

4is 

1927 

Bridgton  & Saco  River  R.R.  Cons. 

4s 

1928 

New  London  N’th’n  R.R. 

ist 

4S 

1940 

N arragansett  Pier  R.R.^  . 

do 

4S 

1916 

Portland  Terminal  Co. 

do 

4s 

1961 

* Secured  on  less  than  100  miles  of  railroad, 
t Dividends  paid  for  insufficient  number  of  years. 
i|  I!  Legalized  by  special  act  of  General  Court. 


li 


Savings  Banks 


MASSACHUSETTS 


Street  Railway  Bonds. 


Boston  & Northern 


St.  Ry.  • . 

Ref’d  ist  mtg. 

4s 

1954 

Boston  & Revere  Elec. 

St.  Ry 

do 

5s 

1928 

East  Middlesex  St.  Ry. 

Plain  . 

5s 

1918 

do 

do  ... 

4s 

1922 

Fitch.  & L’m’st’r  St.  Ry 

ist  mtg. 

5s 

1917 

do 

Cons.  mtg. 

4$s 

1921 

Georgetown,  Rowley  & 

Ipswich  St.  Rv. 

ist  mtg.  . 

5s 

1920 

Gloucester,  Essex  & 

Bev.  St.  Rv. 

do  ... 

5s 

1916 

Haverhill,  Georgetown 

& Danvers  St.  Ry.  . 

do  . . . 

5s 

1919 

Holyoke  Street  Rv. 

Deb.  . . . 

5s 

1915 

do 

do  ... 

5s 

1920 

do 

do  ... 

5s 

1923 

Leominster,  Shirlev  & 

Aver  St.  Ry. 

ist  mtg. 

5s 

1921 

Lowell,  Lawrence  & 

Haverhill  St.  Ry.  . 

do  ... 

5s 

1293 

Lynn  & Boston  R.R.  Co. 

do 

5 s 

1924 

Mystic  Valiev  St.  Ry. 

do 

5s 

1919 

Nahant  & Lynn  St.  Rwy.  do 

5s 

*9*5 

do 

do 

5s 

1929 

People’s  St.  Ry.  . 

do 

5s 

1928 

Springfield  Street  Ry.  . 

do 

4s 

1923 

Springfield  & Eastern 

St.  Ry.  Co.  . 

do  . . . 

5s 

1922 

Union  Street  Rv.  . 

Cons.  mtg. 

5 s 

1914 

Wakefield  & Stoneham 

St.  Ry 

ist  mtg. 

5s 

1915 

West  End  Street  Ry.  . 

Deb.  . . . 

4 is 

i9J4 

do 

do  . . . 

4S 

1915 

do 

do  . . . 

4S 

1916 

do 

do . 

4s 

1917 

do 

do  . . . 

4is 

1923 

do  s 

do  . . . 

4is 

1930 

do 

do  . . . 

4s 

1932 

Western  Mass.  St.  Ry. 

ist  mtg.  . . 

5s 

1926 

Woronoco  St.  Ry. 

do  . . . 

5 s 

1920 

Telephone  Company  Bonds. 

Amer.  Tel.  & Tel.  Co. 

Coll,  trust  . . 

4s 

1929 

M 


* 


Savings  Banks. 


MICHIGAN. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green . brown . 

Other  matter  in  black. 


MICHIGAN. 

Amended  in  1913 

SAVINGS  BANKS. 

(Act  262,  P.  A.,  1905,  as  amended  by  Act 
480,  P.  A.,  1907.) 

Sec.  27.  A Sav.  Bk.  shall  keep  on  hand 
at  least  15%  of  its  total  deposits,  i-3rd  of 
which  reserve  shall  be  in  lawful  money  in 
its  own  vaults  and  the  balance  on  deposit, 
payable  on  demand,  with  Bks.,  Nat.  or  State, 
in  cities  approved  by  the  commissioners  as 
reserve  cities,  or  invested  in  U.  S.  bonds; 
3-5ths  of  the  remainder  of  the  savings  de- 
posits shall  be  invested  by  the  board  of  di- 
rectors as  follows : 

(a)  In  bonds  of  the  U.  S.,  of  any  State 
or  territory  of  the  U.  S. : Provided,  that  such 
State  or  Territory  has  not,  in  the  10  yrs.  pre- 
ceding the  time  of  such  investment  repu- 
diated its  debt  and  failed  to  pay  the  same, 
or  the  interest  due  thereon,  or  upon  any  part 
of  such  debt;  or 

(b)  In  the  public  debt  or  bonds  of  any  city, 
county,  township,  village  or  Sch.  Dist.  of 
any  State  or  Territory  in  the  U.  S.,  which 
shall  have  been  authorized  by  the  legislature 
of  such  State  or  Territory:  Provided,  The 
total  indebtedness  of  such  municipality  does 
not  exceed  5%  of  its  assessed  valuation,  ex- 
cept by  a vote  of  2-3rds  of  the  board  of  di- 
rectors, such  bonds  may  be  purchased  if 
the  total  liabilities  do  not  exceed  10%  of  its 
assessed  valuation;  or 

(c)  In  the  legally  authorized  1st  Mtg. 
bonds  of  any  steam  R.  R.  Corp.  organized 
under  the  laws  of  any  State  of  the  U.  S. : 
Provided,  That  such  Co.  has  for  5 yrs.  prior 
to.  the  time  of  making  such  investment  by 
said  Bk.,  paid  annually,  dividends  equal  to 
not  less  than  4%  on  its  entire  capital  stock 
and  has  not  during  said  period  defaulted 
in  the  payment  of  the  matured  principal  or 

1 


MICHIGAN. 


Savings  Banks, 


interest  of  any  debts  incurred  by  it  and 
secured  by  Mtg.  or  Tr.  deed  upon  its  prop- 
erty or  any  part  thereof,  or  in  the  payment 
of  any  part  of  the  matured  principal  or  in- 
terest of  any  bonds  guaranteed  and  assumed  * 
by  it;  or  ^ 

(d)  In  the  ist  Mtg.  bonds  of  R.  R.  Cos. 
whose  lines  are  leased  or  operated  or  con- 
trolled by  any  R.  R.  Co.  specified  in  para- 
graph (c)  of  this  Sec.,  if  said  bonds  be 
guaranteed  both  as  to  principal  and  interest 
by  the  R.  R.  Co.  to  which  said  lines  are 
leased  or  by  which  they  are  operated  or 
controlled ; 

(e)  In  the  legally  authorized  Mtg.  bonds 
of  any  steam  R.  R.  incorporated  under  the 
laws  of  any  state  of  the  U.  S.,  which  shall 
have  been  issued  for  the  purpose  of  retiring 
all  prior  Mtg.  debt  on  so  much  of  the  prop- 
erty of  such  Co.  as  is  covered  by  the  Mtg. 
securing  such  issue  of  bonds,  and  further 
providing  for  additions,  extensions  or  im- 
provements: Provided,  That  such  Co.  has, 
for  3 yrs.  prior  to  the  time  of  making  such 
investment  by  said  Bk.,  paid  annually,  divi- 
dends equal  to  not  less  than  4%  on  its  en- 
tire capital  stock,  which  capital  stock  shall 
equal  or  exceed  in  amount  i-3rd  of  the  par 
value  of  all  its  bonded  debt,  and  has  not, 
during  the  same  period,  defaulted  in  the 
payment  of  the  matured  principal  or  inter- 
est of  any  debts  incurred  by  it  and  secured 
by  Mtg.  or  Tr.  deed  upon  its  property  or 
any  part  thereof,  or  in  the  payment  of  any 
part  of  the  matured  principal  or  interest  upon 
a bond  guaranteed  or  assumed  by  it:  Pro- 
vided, Said  issues  of  bonds  shall  have  been 
approved  by  the  securities  commission,  here- 
inafter provided  for; 

(f)  In  the  legally  authorized  1st  Mtg. 
bonds  of  any  electric  R.  R.,  street  Rwy.,  gas 

or  electric  light  or  power  Co.,  organized  un-  ^ 
der  the  laws  of  the  State  of  Mich.:  Pro- 
vided,* That  such  Co.  has,  for  5 yrs.  prior 

* The  balance  of  this  paragraph  although  in 
“ brown  ” applies  equally  to  gas  or  electric  light 
or  power  companies. 


2 


Savings  Banks. 


MICHIGAN. 


to  the  time  of  making  such  investment  by 
said  Bk..  paid  annually,  dividends  # equal  to 
not  less  than  4%  on  its  entire  capital  stock, 
and  has  not,  during  the  same  period  de- 
faulted in  the  payment  of  the  matured  prin- 
cipal or  interest  or  any  debts  incurred  by 
it  and  secured  by  Mtg.  or  Tr.  deed  upon  its 
property  or  any  part  thereof,  or  in  the  pay- 
ment of  any  part  of  the  matured  principal 
or  interest  of  any  bonds  guaranteed  or  as- 
sumed by  it;  or  in  the  1st  Mtg.  bonds  of  any 
such  Co.  which  has  been  in  operation  less  than 
5 yrs. : Provided,  That  the  cost  of  construc- 
tion and  equipment  of  the  plant  of  such 
Co.  shall  exceed  by  at  least  50%  the  amount 
of  the  entire  bonded  debt  of  such  Co.,  and 
the  said  plant  and  equipment  shall  be  free 
from  all  other  liens  and  encumbrances,  and 
the  said  Co.  shall  have  earned  during  the 
period  it  has  been  in  operation,  more  than 
enough  to  pay  all  interest  accrued  on  all 
said  bonds  and  not  less  than  4%  per  annum 
dividends  upon  its  entire  capital  stock  out- 
standing: Provided,  Said  issues  of  bonds 
shall  have  been  approved  by  the  securities 
commission  hereinafter  provided  for; 

(g)  In  the  legally  authorized  1st  Mtg. 
bonds  of  steamship  Cos. : Provided,  That 
such  Mtgs.  shall  be  upon  steel  steamship 
or  steamships  upon  the  great  lakes  and  con- 
necting waters  of  package  freight  and  passen- 
gers combined  of  at  least  5,000  tons  carrying 
capacity  each,  and  upon  bulk  freighters  of 
at  least  7,000  tons  carrying  capacity  each: 
Provided,  Such  bonds  are  issued  at  the  time 
of  completion  and  enrollment  of  such  steam- 
ship or  steamships,  or  within  1 yr.  there- 
after: And  Provided  further.  That  by  the 
express  terms  of  said  Mtg.,  at  least  io%.  of 
the  total  issue  of  said  bonds  shall  be  retired 
annually,  beginning  within  2 yrs.  from  the 
date  of  said  bonds,  and  that  the  Mtg.  lia- 
bility against  said  property  shall  not  exceed 
Vz  of  its  actual  cost:  And  Provided  further. 
That  the  trustees  of  such  Mtg.  shall  be  re- 
quired to  protect  the  lien  of  said  Mtg.  by 
attending  to  the  recording  thereof  and  by 

3 


MICHIGAN. 


Savings  Banks. 


causing  property  covered  by  said  Mtg.  to  be 
insured,  against  all  risks  on  vessel  property 
ordinarily  . covered  by  such  Ins.,  including 
marine  risks  and  disasters,  general  and 
particular  average,  collision  liability,  pro- 
tection and  .indemnity  Ins.  and  Ins.  against 
liability  for  injuries  to  persons,  in  Ins.  Cos. 
and  under  forms  of  policies  approved  by 
the  trustee,  for  an  amount  equal  to  the  full 
insurable  value  of  such  steamship,  such  Ins. 
to  be  made  with  loss  payable  to  said  trustee  and 
the  policies  deposited  with  it:  And  Provided 
further,  That  there  shall  be  filed  with  the 
Com.  of  the  Bkg.  Dept,  of  this  State  a 
schedule  of  the  Ins.  upon  such  property, 
which  schedule  shall  be  signed  by  the  trustee 
under  said  Mtg.  and  shall  be  accompanied  by 
the  certificate  of  said  trustee  that  the  poli- 
cies mentioned  in  said  schedule  are  held  by 
said  trustee  and  are  payable  to  said  trustee 
in  case  of  loss  for  the  benefit  of  the  holders 
of  the  outstanding  bonds  issued  under  such 
Mtg. ; and  further,  that  similar  certificates 
be.  filed,  from  time  to  time  by  said  trustee 
with  said  Com.  of  the  Bkg.  Dept,  of  this 
State,  evidencing  renewals  of  said  Ins.  by 
proper  policies  or  legal  Ins.  binders : Pro- 
vided further,  That  by  the  terms  of  such 
Mtg.,  the  mortgagor  shall  not  suffer  such 
steamship  to  become  indebted  in  an  amount 
exceeding  5%  of  the  original  amount  of  the 
principal  of  said  Mtg.  at  any  time  and  that 
the  failure  of  the  mortgagor  to  forthwith 
procure  the  release  of  such  steamship  or 
steamships,  from  mechanics’,  laborers’,  ad- 
miralty, statutory  or  other  liens,  claims  or 
charges  against  such  steamship,  shall  con- 
stitute a default  in  the  provisions  of  such 
Mtg. : And  Provided  further,  That  such 

bonds  shall  have  been  approved  by  the  se- 
curities commission  hereinafter  provided  for; 

(h)  Said  Bks.  may  loan  the  same  upon 
negotiable  paper,  or  other  evidences  of  debt, 
secured  by  any  of  the  above  mentioned  classes 
of  security;  or 

(i)  Upon  notes  or  bonds  secured  by  Mtg. 
lien  upon  unencumbered  real  estate  worth 


4 


Savings  Banks. 


MICHIGAN. 


at  least  double  the  amount  loaned;  the  re- 
mainder of  such  deposits  may  be  invested  in 
notes,  bills  or  other  evidences  of  debt,  the 
payment  of  which  is  secured  by  the  deposit 
with  the  Bk.,  of  collateral  security  consisting 
of  personal  property  or  securities  of  known 
marketable  value,  worth  10%  more  than  the 
amount  so  loaned  and  interest  for  the  time 
of  the  loan;  or  may  be  invested  in  notes,  bills 
or  other  evidences  of  debt,  the  payment  of 
which  is  secured  by  such  property  or  securi- 
ties deposited  in  a Trust  Company  or- 
ganized under  the  laws  of  this  State;  or 
may  be  deposited  in  any  Nat.  Bk.,  Tr.  Co., 
or  Bk.  in  cities  in  this  or  any  other  State, 
approved  by  the  Com.  of  the  Bkg.  Dept,  as 
reserve  cities,  and  a portion  of  said  re- 
mainder, not  exceeding  the  capital  and  ad- 
ditional stockholders’  liability,  may  be  in- 
vested in  negotiable  paper  approved  by  the 
board  of  directors,  but  the  deposits  in  any 
one  Bk.  shall  not  exceed  10%  of  the  total 
deposits,  capital  and  surplus  of  the  deposit- 
ing Bk.  In  case  the  actual  reserve  shall  fall 
below  the  15%  above  provided,  the  Bk.  shall 
promptly  and  in  good  faith,  take  measures  to 
restore  and  maintain  its  lawful  reserve,  in 
default  of.  which  the  Com.,  of  the  Bkg.  Dept, 
shall  require  such  restoration  within  30  days 
after  notice,  * * * 

Sec.  32.  * * * No  bank  or  bank  officer 

shall  give  preference  to  any  depositor  or 
creditor  by  pledging  the  assets  of  the  bank  as 
collateral  security:  Provided,  That  any  bank 
may  pledge  qualified  assets  of  the  bank  for  the 
purpose  of  becoming  a depository  for  postal 
savings  funds  under  the  laws  of  the  U.  S., 
or  for  the  purpose  of  becoming  a depository 
for  surplus  funds  belonging  to  the  State  of 
Mich.;  but  no  bank  transacting  a Sav.  busi- 
ness shall  pledge  Mtgs.  or  bonds  which  rep- 
resent any  portion  of  the  investments  of  its 
Sav.  deposits : * * * In  no  case  shall  an  over- 
draft of  more  than  ninety  days’  standing  be 
allowed  as  an  asset  of  the  bank.  No  bank 
shall  permit  its  Pres.,  its  Vice  Pres.,  its  cash- 
ier, or  any  of  its  directors,  clerks,  tellers, 


MICHIGAN. 


Sayings  Banks. 


bookkeepers,  or  other  persons  in  its  employ, 
to  become  liable  to  it  by  reason  of  overdrawn 
accounts;  * * * 

Sec.  52.  The  total  liabilities  to  any  Bk. 
of  any  person  or  of  any  Co..,  Corp.  or  firm 
for  moneys  advanced,  including  in  the  lia- 
bilities of  the  Co.  or  firm,  the  liabilities  of 
the  several  members  thereof,  except  special 
partners,  shall  at  no  time  exceed  i-ioth  part 
of  the  amount  of  the  capital  and  surplus 
of  such  Bk.,  but  the  discount  of  bills  of 
exchange  drawn  in  good  faith  against  actually 
existing  values  and  the  discount  of  commer- 
cial or  business,  paper  actually  owned  by  the 
person  negotiating  the  same  shall  not  be 
considered  as  money  borrowed : Provided, 
however.  That  the  foregoing  limitations 
shall  not  apply  to  loans  on  real  estate  or 
other  collateral  securities  authorized  by  this 
act  and  deposited  with  the  Bk.,  or  a Trust 
Co.  organized  under  the  laws  of  this  State : 
Provided  further,  That  by  a 2-3rds  vote  of 
directors,  the  liabilities  to  any  Bk.  of  any  per- 
son or  Co.  or  Corp.  or  firm  may  be  increased 
to  a sum  not  exceeding  i-5th  of  the  capital 
and  surplus  of  the  Bk. ; but  such  additional 
i-ioth  of  such  capital  and  surplus  shall  not 
be  loaned  to  any  officer  or  director,  or  to  any 
partnership  in  which  such  officer  or  director 
is  a partner,  or  to  any  Corp.  in  which  such 
officer  or  director  owns  a majority  of  the 
capital  stock,  until  such  officer,  director,  part- 
nership or  Corp.  furnishes  collateral  or  en- 
dorsements satisfactory  to  the  directors,  or 
files  with  the  bank  a sworn  statement  of  as- 
sets and  liabilities  showing  a net  worth  of  suf- 
ficient amount  to  be  entitled  to  such  credit : 
Provided  further,  That  before  any  Bk., 
under  the  supervision  of  the  laws  of  this 
State,  shall  loan  any  of  its  funds  to  its  of- 
ficers or  its  employes,  such  loans  shall  be 
first  submitted  to  the  directors  of  such  Bk. 
for  their  approval.  Not  more  than  i-4th  of 
the  assets  of  any  Bk.  shall  be  loaned  or  in- 
vested in  steam  R.  R.  bonds  and  not  more 
than  i-ioth  of  the  assets  of  any  Bk.  shall  be 
invested  in  the  bonds  of  any  one  R.  R.  Corp. 


Trust  Companies. 


MICHIGAN. 


described  in  paragraph  (c)  or  (d)  of  Sec.  27, 
and  not  more  than  i-20th*  of  such  ^ assets 
in  the  bonds  of  any  Co.  or  Corp.  described  in 

paragraphs  (e),  (f)  or  (g)  of  said  Sec.,  and 

not  more  than  i-ioth  of  the  assets  of  any  Bk. 
shall  be  loaned  to  any  one  person,  Corp.  or 
firm  on  the  collateral  pledges  described  in 
paragraph  (h)  of  same  Sec. 


(Act  262,  P.  A.,  1905.) 


Sec.  67.  There  shall  be  a board  of  com- 
missioners for  the  purpose  of  passing  on  the 
securities  mentioned  in  paragraphs  (e),  (f) 
or  (g)  of  Sec.  27  of  this  act,  consisting  of 
the  Com.  of  the  State  Bkg.  Dept,  who  shall 
be  chairman,  the  Attorney  General  and  the 
State  Treasurer  of  this  State,  who  shall  be 
members  of  this  board  during  their  respec- 
tive terms  of  office,  which  board  shall  be 
known  as  the  Securities  Commission.  It  shall 
be  the  duty  of  this  commission,  whenever 
an  issue  of  bonds,  which  shall  come  within 
the  requirements  of  paragraphs  (e)  and  (f) 
of  Sec.  27  of  this  act,  shall  be  presented  to 
them,  to  examine  into  the  financial  condi- 
tions of  the  Corp.  issuing  such  bonds,  and 
ascertain  whether  such  issue  is  excessive  as 
compared  with  the  value  of  the  property  of 
such  Corp.,  and  if  they  shall  find  that  such 
issue  of  bonds  is  not  excessive  and  that  they 
comply  with  the  other  requirements  of  said 
paragraphs  of  said  Sec.,  they  shall  so  certify 
in  a book  to  be  kept  in  the  State  Bkg.  Dept, 
for  that  purpose,  and  thereupon  said  Bks. 
may  invest  in  such  bonds.  The  actual  expense 
of  the  commission  in  examining  the  issues  of 
bonds  presented  as  aforesaid,  shall  be  paid  by 
the  person  or  Co.  applying  to  said  commis- 
sion to  have  such  bonds  certified  as  legal  in- 
vestment under  said  paragraphs  of  said  Sec. 

TRUST  COMPANIES. 

Sec.  2.  * * * As  soon  as  possible,  and  not 

♦ This  1-20 th  limitation  applies  to  street  Rwy. 
Co.  bonds. 


MICHIGAN. 


Trust  Companies. 


later  than  6 Mos.,  after  any  such  Co.  has 
commenced  business  under  the  provisions  of 
this  act,  it  shall  deposit  with  the  State 
treasurer  of  this  State  not  less  than  50%  of 
the  amount  of  its  capital  stock,  nor  more 
than  $200,000  in  amount;  such  deposit  to  be 
in  bonds  and  Mtgs.,  or  notes  and  Mtgs.  on 
unencumbered  real  estate  within  the  State 
of  Mich.,  worth  double  the  amount  secured 
thereby,  or  public  stocks  and  bonds  of  the 
U.  S.,  or  any  State  of  the  U.  S.,  that  has  not 
defaulted  on  its  principal  or  interest  within 
10  yrs.,  or  of  any  organized  county  or  town- 
ship, or  incorporated  city  or  village,  or  Sch. 
Dist.  in  this  State,  or  in  any  other  such  State, 
duly  authorized  to  be  issued#;#  and  upon  all 
which  bonds  or  other  securities  there  shall 
have  been  no  default  in  the  payment  of  in- 
terest or  principal;  which  bonds  and  Mtgs., 
or  notes  and  Mtgs.,  or  public  stocks  or  bonds, 
shall  be  held  by  the  State  treasurer,  in  trust, 
as  security  for  the  depositors  and  creditors 
of  said  Corp.  * * * 

Sec.  9.  * * * Such  Corp.  shall  have  power 
to  loan  money  upon  real  estate  and  collateral 
security,  and  execute  and  issue  its  notes  and 
debentures,  payable  at  a future  date,  and  to 
pledge  . its  Mtgs.  on  real  estate  and  other 
securities  as  security  therefor.  * * * 

Sec.  10.  It  shall  be  lawful  for  any  such 
Corp.  to  lease,  purchase,  hold  and  convey 
all  such  personal  estate  as  may  be  necessary 
to  carry  on  its  business,  or  as  it  may  deem 
necessary  to  acquire  in  the  enforcement  or 
settlement  of  any  claims  or  demands  arising 
out  of  its  business  transactions,  and  to  exe- 
cute and  issue  in  the  transaction  of  its  busi- 
ness, all  necessary  receipts,  certificates,  pa- 
pers and  contracts  which  shall  be  signed  by 
such  person  or  persons  as  may  be  designated 
by  the  by-laws  of  such  Corp.;  and  it  shall 
be  lawful  for  any  such  Corp.  to  lease,  pur- 
chase,  hold  and  convey  real  estate  as  its 
corporate  property  for  the  following  pur- 
poses, but  no  other: 

1st.  Such  as  shall  be  necessary  for  the 
convenient  transaction  of  its  business,  in- 


Trust  Companies. 


MICHIGAN. 


eluding  with  its  business  office  other  apart- 
ments in  the  same  building,  to  rent,  as  a 
source  of  income,  but  which  shall  not  ex- 
ceed 50%  of  its  paid-in  capital  and  surplus. 

2d.  Such  as  shall  be  conveyed  to  it  in  sat- 
isfaction of  debts  previously  contracted  in 
the  course  of  its  business. 

3d.  Such  as  it  shall  purchase  at  sales  under 
judgments,  decrees  or  Mtgs.,  held  by  it,  but 
such  Corp.  shall  not  bid  at  any  such  sale 
a larger  amount  than  is  necessary  to  satisfy 
its  debt  and  costs.  Real  estate  shall  be  con- 
veyed by  such  Corp.  under  its  seal  and  the 
hand  of  such  officer  or  officers  as  may  be  des- 
ignated by  the  by-laws  of  such  Corp.  No 
real  estate  acquired  in  the  cases  contemplated 
in  the  2nd  and  3rd  sub-secs,  above  shall  be 
reckoned  as  an  asset  for  a longer  time  than 
5 yrs. 

And  it  shall  also  be  lawful  for  such  Corp. 
to  take  and  accept  by  grant,  assignment,  pur- 
chase, transfer,  device,  or  bequest,  and  hold 
any  real  or  personal  estate  in  trust,  in  pur- 
suance of  the  directions  of  any  trust  created 
in  accordance  with  the  laws  of  this  State,  or 
of  the  U.  S. 

Every  such  Corp.  shall  keep  on  hand  funds 
to  an  amount  equal  to  at  least  20%  of  its 
matured  obligations  and  money  due  and 
payable,  3-4ths  of  which  reserve  may  be  kept 
in  any  Bk.  or  Tr.  Co.  approved  by  the  Com. 
of  the  Bkg.  Dept. 

Sec.  11.  * * * And  such  board  of  directors 
may  invest  or  loan  the  balance  of  its  capi- 
tal stock  and  other  moneys  received  by  such 
Corp.  in  trust,  in  bonds  secured  by  Mtgs. 
or  notes  and  Mtgs.  on  unencumbered  real 
estate  within  the  State  of  Mich.,  worth  double 
the  amount  secured  thereby,  or  in  public 
stocks  and  bonds  of  the  U.  S.,  or  any  State 
of  the  U.  S.  that  has  not  defaulted  on  its 
principal  or  interest  within  10  yrs.;  or  oi 
any  organized  county  or  township,  or  in- 
corporated city  or  village  or  Sch.  Dist.  in 
this  State  or  in  any  other  such  State,  duly 
authorized  to  be  issued,  or  in  such  real  or 
personal  securities  as  they  may  deem  proper. 


MICHIGAN. 


Commercial  Banks. 


Sec.  52  under  Commercial  Bks.  also  ap- 
plies to  Tr.  Cos. 

COMMERCIAL  BANKS. 

Sec.  23.  Any  Bk.  which  by  its  articles  of 
incorporation  shall . designate  its  business  as 
that  of  a Commercial  Bk.  shall  have  power  to 
carry  on  the  business  of  banking  as  prescribed 
and  limited  in  this  act,  but  it  shall  not  lend  to 
exceed  50%  of  its  capital  stock  and  surplus  upon 
Mtg.  or  any  other  form  of  real  estate  security, 
and  then  only  upon  the  adoption  of  a resolution 
by  a 2-3rds  vote  of  the  board  of  directors 
stating  to  what  extent  its  officers  may  loan  on 
real  estate,  as  herein  provided,  except  to  se- 
cure a debt  previously  contracted  in  good 
faith  on  personal  security  deemed  at  the 
time  adequate  to  secure  such  loan. 

Sec.  24.  Commercial  Bks.  may  invest  their 
capital  and  deposits,  except  the  reserve  pro- 
vided for  in  this  Sec.,  in  negotiable  or  com- 
mercial paper,  or  loan  the  same  upon  personal 
securities. 

* * * Sec.  1.  No  Bk.  shall  take  as  security 
for  any  loan  or  discount  a lien  upon  any 
part  of  its  capital  stock.  The  same  security 
in  kind  and  amount  shall  be  required  of 
stockholders  and  of  persons  not  stockholders. 
No  Bk.  shall  be  the  holder  or  purchaser  of 
any  portion  of  its  capital  stock  unless  such 
purchase  shall  be  necessary  to  prevent  loss 
upon  a debt  previously  contracted  in  good 
faith.  Stock  so  purchased  shall  in  no  case 
be  held  by  the  Bk.  for  a longer  time  than  6 
Mos.,  if  the  stock  can  be  sold  for  what  it  cost, 
and  it  must  be  sold  for  the  best  price  obtain- 
able within  1 yr.,  or  canceled  as  hereinafter 
provided  for  the  reduction  of  capital  stock. 

* * * Sec.  11.  A bk.  may  purchase,  hold 
and  convey  real  estate  for  the  following  pur- 
poses, but  no  other: 

1st.  Such  as  shall  be  necessary  for  the  con- 
venient transaction  of  its  business,  includ- 
ing with  its  banking  office,  other  apartments 
to  rent  as  a source  of  income,  but  which 
shall  not  exceed  50%  of  its  paid-in  capital; 

2d,  Such  as  shall  be  conveyed  to  it  in  satis- 


10 


Commercial  Banks. 


MICHIGAN. 


faction  of  debts  previously  contracted  in  the 
course  of  its  business; 

3d.  Such  as  it  shall  purchase  at  sale  under 
judgments,  decrees,  or  Mtg.  foreclosures 
under  securities  held  by  it;  * * * 

Sec.  52.  In  addition  to  the  investments 
authorized  by  statute,  State  Bks.  and  Tr.  Cos. 
may  invest  their  deposits  and  the  income  de- 
rived therefrom:  1st,  In  the  legally  author- 
ized bonds  of  the  New  York  Cent.  & Hud- 
son Riv.  R.  R.  Co.,  of  the  Mich.  Cent.  R.  R. 
Co.,  of  the  Lake  Shore  & Mich.  So.  Rwy. 
Co.,  of  the  111.  Cent.  R.  R.  Co.,  of  the  Penn. 
R.  R.  Co.,  of  the  Del.,  Lackawanna  & West- 
ern R.  R.  Co.,  of  the  Chi.,  Bur.  & Quincy 
R.  R.  Co.,  of  the  Chi.  & Northwestern  Rwy. 
Co.  and  the  Del.  & Hud.  Canal  Co. : Pro- 
vided, that  all  such  bonds  hereby  authorized 
for  investment  shall  be  secured  by  a 1st  Mtg. 
of  the  whole  or  a part  of  the  R.  R.  and 
R.  R.  property  actually  in  the  possession  of 
and  operated  by  such  Co.,  and  provided  that 
each  R.  R.  whose  bonds  are  hereby  authorized 
for  investment  shall  have  earned  and  paid 
regular  dividends  of  not  less  than  4%  each 
fiscal  yr.  on  all  its  issues  of  capital  stock 
for  the  10  yrs.  next  preceding  such  invest- 
ment, and  that  such  capital  stock  shall  equal 
or  exceed  in  amount  i-3rd  of  the  par  value 
of  all  its  bonded  indebtedness.  Not  more 

than  20%  of  the  whole  amount  of  deposits 
of  any  Bk.  shall  be  loaned  or  invested  in 

R.  R.  bonds,  and  not  more  than  5%  of  the 

deposits  of  any  Bk.  shall  be  invested  in  the 
bonds  of  any  one  R.  R.  Street  and  electric 
Rwy.  Corps.,  shall  not  be  considered  R.  R. 
Corps,  within  the  meaning  of  this  subdiv.  2d, 
In  the  legally  authorized  bonds  of  any  R.  R. 
Co.  incorporated  under  the  authority  of  the 
States  of  N.  Y.,  Mass.,  Ohio,  Mich.,  111. 

or  Iowa,  whose  road  is  located  wholly  or  in 
part  in  the.  same  and  has  earned  and  paid 
regular  dividends  of  not  less  than  4%  per 
annum  on  all  its  issues  of  capital  stock  for 
the  10  yrs.  preceding  such  investment:  Pro- 
vided, said  bonds  be  secured  by  a 1st  Mtg. 
of  the  whole  or  a part  of  the  R.  R.  and  R.  R. 


MICHIGAN.  Safety  and  Collateral  Deposit  Companies. 


property,  of  such  Co.  and  be  guaranteed,  both 
principal  and  interest,  by  one  or  more  of 
the  Cos.  named  in  the  ist  clause  of  this  act. 

See  also  Sec.  32  under  Savings  Banks. 

SAFETY  AND  COLLATERAL  DEPOSIT 
COMPANIES. 

(Act  478,  P.  A.,  1907.) 

Sec.  10.  It  shall  be  lawful  for  any  such 
Corp.  to  purchase,  lease,  hold  and  convey  all 
such  real  and  personal  estate  as  may  be 
necessary  for  the  proper  conduct  of  its  busi- 
ness. Any  surplus  of  capital  not  used  for 
the  purposes  aforesaid  may  be  invested  in 
such  securities  as  are  designated  by  law  as 
lawful  investments  for  Sav.  Bks. 


Savings  Banks. 


MINNESOTA. 


Municipal  Law  in  red . Street  Railway  Law  in 

Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


MINNESOTA. 

Amended  in  1913. 

SAVINGS  BANKS. 

2976.  Save  as  otherwise  specially  pro- 
vided, the  entire  cost  of  land  and  buildings 
for  the  transaction  of  the  business  of  a 
Sav.  Bk.,  including  premises  leased  to 
others,  shall  not  be  more  than  50%  of  its 
net  surplus,  assets  other  than  cash  being 
taken  at  cash  market  value.  Any  such  cor- 
poration may  change  its  location,  dispose 
of  its  place  of  business,  and  acquire  an- 
other, upon  the  written  approval  of  the 
examiner. 

3021.  Any  such  Bk.  may  purchase,  hold, 
or  convey  land  sold  upon  foreclosure  of 
Mtgs.  owned  by  it,  or  upon  judgments  or 
decrees  in  its  favor,  or  in  settlement  of 
debts,  or  received  in  exchange  as  part  of 
the  consideration  of  real  estate  sold  by  it. 
But  real  estate  so  received  in  exchange 
shall  not  be  carried  on  the  books  of  the  Bk. 
at  a price  exceeding  the  cost  of  that  ex- 
changed, less  the  cash  payment,  and  all  real 
estate  so  acquired  shall  be  sold  within  10 
yrs.  after  its  acquirement,  unless  the  time  is 
extended  by  the  public  examiner  on  applica- 
tion of  the  board  of  trustees. 

3022.  Authorized  Securities.  The  trus- 
tees of  any  Sav.  Bk.  shall  invest  the  moneys 
deposited  therein  only  as  follows : 

1.  In  the  bonds  or  other  interest  bearing 
obligations  of  the  U.  S.5>  or  in  securities 
for  the  payment  of  which  and  interest 
thereon  the  faith  of  the  government  is 
pledged. 

2.  In  the  bonds  of  any  state  which  has 
not  defaulted  in  the  payment  of  any  bonded 


MINNESOTA. 


Savings  Banks. 


debt  within  io  yrs.  prior  to  the  making  of 
such  investment. 

3.  In  the  bonds  of  any  county,  city,  town, 
village,  school,  drainage,  or  other  Dist.  cre- 
ated pursuant  to  law  for  public  purposes 
in  Minn.,  or  in  any  warrant,  order  or  in- 
terest bearing  obligation  issued  by  this 
state,  or  by  any  city,  city  board,  town  or 
county  therein,  provided,  that  the  net  debt 
of  any  such  municipality  or  Dist.,  as  net 
debt  is  defined  by  Revised  Laws,  1905,  Sec. 
777,  and  its  amendments,  shall  not  exceed 
10%  of  its  assessed  valuation,  or  in  the 
bonds  of  any  county,  city,  town,  village, 
school,  drainage  or  other  Dist.,  created  pur- 
suant to  law  for  public  purposes  in  Iowa, 
Wis.,  and  No.  and  So.  Dak.,  or  in  the 
bonds  of  any  city,  county,  town,  village, 
Sch.  Dist.,  drainage  or  other  Dist.  created 
pursuant  to  law  for  public  purposes,  in  the 
U.  S.,  containing  at  least  3,500  inhabitants; 
provided  that  the  total  bonded  debt  of  any 
such  municipality  or  Dist.  shall  not  exceed 
10%  of  its  assessed  valuation. 

4.  In  notes  or  bonds  secured  by  Mtgs. 
or  Tr.  Deeds  on  unincumbered  real  estate 
in  Minn.,  Wis.,  Iowa,  No.  Dak.,  So.  Dak., 
and  Mont.,  worth  when  improved  at  least 
twice  and  when  unimproved  at  least  3 
times  the  amount  loaned  thereon.  But 
not  more  than  70%  of  the  whole  amount 
of  the  moneys  of  the  Bk.  shall  be  so  loaned, 
and  such  investment  shall  be  made  only  on 
report  of  a committee  directed  to  investi- 
gate the  same  and  report  its  value,  accord- 
ing to  the  judgment  of  its  members,  and 
its  report  shall  be  preserved  among  the 
bank's  records. 

5.  In  notes  secured  by  such  bonds  or 
Mtgs.  as  the  Bk.  under  this  section  is  auth- 
orized to  invest  in,  but  no  such  bond  or 
Mtg.  shall  be  taken  as  collateral  security 
for  more  than  its  par  value,  nor  shall  the 
aggregate  amount  of  securities  taken  be 
less  than  the  full  amount  loaned  thereon, 


Savings  Banks. 


MINNESOTA. 


and  no  such  loan  shall  be  made  for  a 
longer  time  than  I year,  nor  to  a greater 
amount  to  any  I person  than  3%  of  the 
total  deposits  of  the  Bk.  No  such  Bk. 
shall  loan  in  the  aggregate  on  the  security 
specified  in  this  paragraph,  more  than  ^ 
of  its  deposits. 

6.  In  the  bonds  of  any  R.  R.  Co.,  or  the 
successor  of  any  R.  R.  Co.,  which  has  re- 
ceived a land  grant  from  the  government, 
and  whose  bonds  are  secured  by  1st  lien 
upon  its  R.  R. 

7.  In  the  bonds  of  any  other  R.  R.  Co. 
which  are  secured  by  1st  lien  upon  a R.  R. 
within  the  U.  S.,  or  in  the  Mtg.  bonds  of 
any  such  Co.,  of  an  issue  to  retire  all  prior 
Mtg.  debt  thereof,  or  in  the  bonds  of  any 
R.  R.  Co.  in  the  U.  S.  which  are  guaranteed 
or  assumed  by  another  R.  R.  Co.  within  the 
U.  S. : Provided,  that  the  R.  R.  Co.,  except 
one  whose  bonds  are  so  guaranteed  or  as- 
sumed, either  issuing,  guaranteeing,  or  as- 
suming any  of  such  bonds,  has  not  within 
5 yrs.  prior  to  such  investment  failed  in  the 
payment  of  a dividend  upon  its  entire  capi- 
tal stock  outstanding  of  not  less  than  4% 
per  annum  each  fiscal  yr.,  and  has  not  with- 
in such  time  defaulted  in  the  payment  of 
any  part  of  the  principal  or  interest  of  any 
debt  incurred  by  it  and  secured  by  trust 
deed  or  Mtg.  upon  its  road  or  any  part 
thereof,  or  in  the  payment  of  any  part  of 
the  principal  or  interest  of  any  bonds  guar- 
anteed or  assumed  by  it.  But  no  such  Bk. 
shall  loan  upon  or  invest  in  R.  R.  bonds  to 
an  amount  exceeding  in  the  aggregate  20% 
of  its  deposits,  nor  exceeding  5%  of  its  de- 
posits in  the  bonds  issued,  guaranteed,  or 
assumed  by  any  one  R.  R.  Co. 

8.  In  the  debenture  stock  of  any  R.  R. 
Co.  owning  and  operating  a line  of  road  in 
whole  or  in  part  within  the  state,  provided 
that  such  stock  shall  bear  interest  at  the 
rate  of  at  least  4%  per  annum,  and  shall  be 
secured  by  trust  deed  as  a 1st  lien  upon 


MINNESOTA. 


Savings  Banks. 


such  line  of  Rwy.,  and  that  not  more  than 
5%  of  its  deposits  shall  be  invested  in 
such  stock. 

The  term  “authorized  securities,”  when- 
ever used  in  the  Revised  Laws,  shall  be 
understood  as  referring  to  the  securities 
specified  in  this  Sec. 

777-  NET  INDEBTEDNESS  DE- 
FINED.— The  words  “net  indebtedness/’  as 
used  herein,  shall  mean  the  sum  of  all  out- 
standing money  obligations  of  the  corpor- 
ation referred  to,  after  deducting: 

1.  Orders  or  warrants  drawn  upon  the 
treasurer,  and  payable  forthwith. 

2.  Certificates  of  indebtedness  and  bonds 
issued  for  the  creation  or  maintenance  of 
a permanent  improvement  revolving  fund. 

3.  Obligations  incurred  in  acquiring  land 
for  streets,  parks  or  other  public  improve- 
ments, and  payable  from  the  proceeds  of 
assessments  levied  upon  property  especially 
benefited  by  such  improvements. 

4.  Bonds  issued  for  the  purchase  or  con- 
struction of  public  waterworks,  or  for  the 
enlargement,  protection  or  distribution  of 
the  water  supply,  for  the  establishment  of 
public  lighting,  heating,  or  power  plants, 
and  for  the  acquisition  and  equipment,  by 
purchase  or  otherwise,  of  street  railways, 
telegraph  or  telephone  lines,  or  any  other 
public  convenience  from  which  a revenue  is 
or  may  be  derived. 

5.  The  amount  of  all  money,  and  the 
face  value  of  all  securities  held  as  a sink- 
ing fund  for  the  extinguishment  of  corpo- 
rate debts  other  than  those  enumerated  in 
this  section. 

3023.  Its  board  shall  promptly  invest  all 
deposits  except  so  much,  not  exceeding 
15%,  as  may  be  required  for  current  neces- 
sary disbursements,  which  it  shall  retain  or 
deposit  in  solvent  authorized  banking  insti- 
tutions in  Minn,  or  in  the  cities  of  N.  Y. 
or  Chicago,  or  in  loans  payable  on  demand 
upon  any  of  the  first  2 classes  of  author- 


4 


Savings  Banks  Acting  Under  1867  Law.  MINNESOTA. 


ized  securities  to  the  extent  only  of  90% 
of  their  cash  market  value,  but  never  ex- 
ceeding par;  upon  condition  always  that 
in  case  of  depreciation  below  that  propor- 
tion  it  shall  be  immediately  restored  by 
additional  security  of  the  same  classes  or 
at  once  repaid.  But  meanwhile  so  much 
thereof  as  cannot  be  judiciously  so  invested 
and  as  is  not  deemed  necessary  to  be  kept 
on  hand  shall  be  deposited  daily  in  1 or 
more  solvent  Bks.  or  Tr.  Cos.  In  case  of 
the  insolvency  thereof,  their  indebtedness, 
if  any,  to  a Sav.  Bk.  shall  be  preferred  to 
that  of  every  other  creditor  except  the 
U.  S.  and  this  state.  * * * 


Savings  Banks  Acting  Under  tiie  Law  of  1867. 

Note:  There  are  two  distinct  Sav.  Bk. 
laws  in  Minn.  The  foregoing  matter  cov- 
ers all  but  the  Hennepin  County  Sav.  Bk., 
Minneapolis,  and  the  Winona  Sav.  Bk.,  Win- 
ona, which  are  acting  under  the  Law  of 
1867,  given  below. 

(Chapter  71.) 

Sec.  7.  No  president,  trustee  or  officer  or 
servant  of  such  Corp.,  shall  directly  or  in- 
directly borrow  the  funds  of  such  Corp., 
or  its  deposits,  or  in  any  manner  use  the 
same  in  their  private  affairs  or  business. 

Sec.  8.  At  least  ^ of  the  whole  amount 
deposited  shall  be  invested. 

1st.  In  the  bonds  or  interest-bearing 
notes  or  obligations  of  the  U.  S.,  or  those 
for  which  the  faith  of  the  U.  S.  is  pledged 
for  the  payment  of  the  interest  and  prin- 
cipal. 

2d.  In  the  bonds  of  any  state  in  the 
Union,  provided  that  such  state  has  not 
within  10  yrs.  previous  to  making  such  in- 
vestment by  such  Corp.  defaulted  in  the 
payment  of  any  part  of  the  principal  or 
interest  on  any  debts  authorized  by  any 

5 


MINNESOTA.  Savings  Banks  Acting  Under  1867  Law. 


} 


legislature  of  such  state  to  be  contracted, 
and  of  the  State  of  Minn.,  issued  since  i860. 

3d.  In  the  bonds  of  any  city,  county, 
town,  village  or  Sch.  Dist.  in  the  states  of 
Minn.,  Wis.,  Iowa,  No.  Dak.,  So.  Dak.,  111., 
Ind.,  Ohio  or  Mich.,  or  in  any  warrants  or 
interest-bearing  obligations  issued  by  the 
said  states  or  counties  in  said  states,  or  city 
or  city  board,  town,  village  or  Sch.  Dist. 
within  the  county  in  which  such  Bks.  shall 
be  situated,  or  in  the  bonds  of  any  city, 
county,  town,  village  or  Sch  Dist.  of  the 
U.  S.,  which  city,  county,  town,  village  or 
Sch  Dist.  had  at  least  5,000  inhabitants  as 
determined  by  the  state  or  U.  S.  census 
taken  next  preceding  the  issue  of  bonds 
tendered;  provided,  that  the  bonded  debt 
of  any  such  city,  county,  town,  village  or 
Sch.  Dist.  so  tendering  bonds  shall  not  ex- 
ceed 10%  upon  the  assessed  valuation  of 
such  city,  county,  town,  village  or  Sch.  Dist. 
at  the  time  of  the  issue  of  the  bonds 
tendered. 

4th.  In  notes  secured  by  Mtg.  on  unin- 
cumbered real  estate  situate  in  the  states 
of  Minn.,  Wis.,  Iowa,  No.  Dak.  or  So.  Dak., 
and  worth  at  least  twice  the  amount  loaned 
thereon,  but  in  case  the  loan  is  on  unim- 
proved or  unproductive  real  estate  the  amount 
loaned  thereon  shall  not  be  more  than  30% 
of  its  actual  value,  and  no  investment  in 
any  bond  and  Mtg.  shall  be  made  by  any 
Sav.  Bk.  except  upon  the  report  of  a com- 
mittee charged  with  the  duty  of  investigat- 
ing the  same,  and  who  shall  certify  to  the 
value  of  the  premises  mortgaged,  or  to  be 
mortgaged,  according  to  their  best  judg- 
ment, and  such  report  shall  be  filed  and 
preserved  among  the  records  of  the  in- 
stitution. 

5th.  The  remaining  V2  may  be  invested 
in  said  bonds  or  loaned  on  the  aforesaid 
securities  or  upon  approved  personal  or 
collateral  security  or  in  the  bonds  of  an> 

R.  R.  Co.  as  hereinafter  provided,  or  used 


6 


Savings  Banks  Acting  Under  1867  Law.  MINNESOTA. 


to  buy  and  sell  exchange;  but  no  loan  shall 
be  made  upon  the  personal  security  of  less 
than  2 responsible  individuals. 

6th.  In  the  bonds  of  any  R.  R.  Co.,  or 
the  successor  of  any  R.  R.  Co.,  which  has 
w received  a land  grant  from  the  government 
of  the  U.  S.,  and  which  are  secured  by  1st 
lien  upon  its  R.  R. 

7th.  In  the  bonds  of  any  other  R.  R.  Co., 
which  are  secured  by  ist  lien  upon  a R.  R. 
within  the  U.  S.,  or  in  the  Mtg.  bonds  of 
any  such  R.  R.  Co.  of  an  issue  to  retire  all 
prior  Mtg.  debt  of  such  R.  R.  Co.;  or  in 
the  bonds  of  any  R.  R.  Co.  within  the 
U.  S.,  which  are  guaranteed  or  assumed  by 
another  R.  R.  Co.,  within  the  U.  S. ; pro- 
vided, that  the  R.  R.  Co.  (except  a R.  R. 
Co.  whose  bonds  are  guaranteed  or  as- 
sumed as  aforesaid)  either  issuing,  guar- 
anteeing or  assuming  any  of  said  bonds  has 
not  within  5 yrs.  prior  to  the  time  of  mak- 
ing such  investment  by  said  Bk.  failed  in 
the  payment  of  a dividend,  upon  its  entire 
capital  stock  outstanding,  of  not  less  than 
4%  per  annum  each  fiscal  yr.  during  said 
5 yr.  period ; and  has  not  within  5 yrs. 
prior  to  the  time  of  making  such  invest- 
ment  by  said  Bk.,  defaulted  in  the  payment 
of  any  part  of  the  principal  or  interest  of 
any  debt  incurred  by  it  and  secured  by  Mtg. 
or  trust  deed  upon  its  R.  R.,  or  any  part 
thereof,  or  in  the  payment  of  any  part  of 
N the  principal  or  interest  of  any  bonds  guar- 
anteed or  assumed  by  it;  and  provided  fur- 
ther, that  no  Sav.  Bk.  shall  ever  loan  upon, 
or  invest  in  R.  R.  bonds  to  exceed  in  the 
aggregate  20%  of  its  deposit  nor  shall  such 
Sav.  Bk.  ever  loan  upon  or  invest  in  the 
bonds  issued  or  guaranteed  or  assumed  by 
any  one  R.  R.  Co.,  to  exceed  in  the  aggre- 
gate 5%  of  its  deposits. 


MINNESOTA. 


Trust  Companies. 


TRUST  COMPANIES. 

3333.  * * * No  Tr.  Co.  hereafter  organized 
shall  transact  any  business  until  all  of  its 
authorized  capital  stock  has  been  paid  in, 
in  cash,  or,  if  such  authorized  capital  be 
more  than  $200,000,  until  at  least  $200,000 
thereof  has  been  paid  in,  in  cash,  and  at 
least  50%  of  the  capital  of  all  Tr.  Cos.  of 
less  than  $200,000  and  25%  of  the  capital  of 
all  Tr.  Cos.  of  $200,000  or  more  hereafter 
organized  has  been  invested  in  one  or  more 
of  the  1st,  2d,  3d,  4th,  7th,  and  8th  classes 
of  authorized  securities,*  duly  assigned  and 
transferred  to  and  deposited  with  the  Supt. 
of  Bks.,  and  his  certificate  thereof  pro- 
cured; or,  if  its  capital  be  more  than 
$200,000,  until  at  least  %th  thereof  has  been 
so  invested,  assigned,  transferred  and  de- 
posited, and  such  certificate  thereof  pro- 
cured. * * * Such  deposit  shall  be  maintained 
unimpaired  as  a guaranty  fund  for  depos- 
itors and  creditors  and  for  the  faithful  dis- 
charge of  its  duties,  with  the  right  to  col- 
lect the  income  thereof  and  to  substitute 
other  like  authorized  securities*  of  equal 
amount  and  value. 

The  capital  stock  of  any  Tr.  Co.  may  be 
reduced  with  the  approval  of  the  Supt.  of 
Bks.,f  * * * and  no  assets  shall  be  returned 
to  the  stockholder  unless  its  deposits  of 
authorized  securities*  after  such  return 
equal  % th  of  such  reduced  capital  in  no 
event  less  than  $25,000;  * * *. 

3035.  Such  corporation  may  acquire,  use, 
and  improve,  and  for  that  purpose  Mtg., 
lease,  sell,  and  convey,  such  real  and  per- 
sonal property  as  may  be  necessary  for  the 
transaction  of  its  business.  Any  estate  or 
interest  in  real  estate  which  it  may  acquire 
by  virtue  of  the  foreclosure  of  any  Mtg., 
Tr.  deed,  or  other  security,  or  by  the  settle- 


*See  Section  3022  under  Savings  Banks,  which 
allows  certain  and  municipal  securities. 

fBut  not  below  a certain  minimum. 


Trust  Companies. 


MINNESOTA. 


ment  of  any  obligation  or  otherwise,  in  the 
course  of  its  legitimate  business,  it  may  sell 
or  continue  to  hold  and  use  as  deemed  for 
its  interests  or  those  of  the  estate  or  trust 
to  which  the  same  belongs,  and  to  that  end 
it  may  become  the  purchaser  at  any  fore- 
closure or  judicial  sale  to  which  it  is  a party 
as  trustee  or  otherwise.  It  may  also  accept 
or  make  any  deed,  Mtg.,  or  other  instru- 
ment necessary  for  the  transaction  of  its 
business,  may  loan  money  and  secure  such 
loans  by  Mtg.,  Tr.  deed  or  pledge,  purchase 
notes,  bonds,  Mtgs.,  and  other  evidences 
of  debt,  and  securities,  and  sell  and  assign 
the  same,  and  convert  them  into  cash  or 
into  other  authorized  securities,*  or  securi- 
ties and  property  not  herein  expressly  pro- 
hibited. * * * It  shall  invest  none  of  its  cap- 
ital or  surplus  in  real  estate  except  as  here- 
in authorized,  nor  any  of  its  deposits  or 
Tr.  funds  or  property  therein  except  as  so 
authorized,  or  under  or  by  virtue  of  an  ex- 
press contract,  judgment,  or  other  instru- 
ment conferring  or  imposing  special  power 
and  authority  so  to  do. 

3040.  It  may  invest  all  moneys  received 
by  it  in  trust  in  authorized  securities*  and 
shall  be  responsible  to  the  owner  or  cestui 
que  trust  for  the  validity,  regularity,  qual- 
ity, value,  and  genuineness  of  such  invest- 
ments and  securities  so  made,  and  for  the 
safe-keeping  of  the  securities  and  evidences 
thereof.  Whenever  special  directions  are 
given  in  any  order,  judgment,  decree,  will, 
or  other  written  instrument  as  to  the  par- 
ticular manner  or  the  particular  class  or 
kind  of  securities  or  property  in  which  any 
investment  shall  be  made,  it  shall  follow 
such  directions,  and  in  such  case  it  shall 
not  be  further  responsible  by  reason  of  the 
performance  of  such  trust.  . In  all  other 
cases  it  may  invest  the  same  in  any  of  said 


*See  Section  3022  under  Savings  Banks,  which 
allows  certain  railrop,  and  municipal  securities. 

9 


MINNESOTA.  State  Banks  of  Discount  and  Deposit. 


authorized  securities,*  using  its  best  judg- 
ment in  the  selection  thereof,  and  shall  be 
responsible  for  their  validity,  regularity, 
quality,  and  value  thereof  at  the  time  made, 
and  for  their  safe-keeping.  It  may,  in  its 
discretion,  retain  and  continue  any  invest- 
ment and  security  or  securities  coming  into 
its  possession  in  any  fiduciary  capacity. 

3043.  Any  amount  not  less  than  $100,000 
received  by  it  as  executor,  administrator, 
guardian,  or  other  trustee,  or  by  order  of 
court,  not  required  for  the  purposes  of  such 
trust,  or  not  to  be  accounted  for  within  1 
yr.,  it  shall  invest  as  soon  as  practicable 
in  authorized  securities*  either  then  held  by 
it  or  specially  procured  by  it;  and  the  in- 
come, less  its  proper  charges,  shall  become 
part  of  the  trust  estate,  and  the  net  accum- 
ulations thereon  shall  be  likewise  invested, 
accounted  for,  and  allowed  in  the  settle- 
ment of  such  trust. 

3045.  * * * It  shall  not  lend  its  funds, 
moneys,  capital,  trust  funds,  or  any  other 
property  whatsoever,  to  any  director,  offi- 
cer, agent,  or  employee,  nor  shall  any  such 
director,  officer,  agent,  or  employee  become 
in  any  manner  indebted  to  it  by  means  of 
any  overdraft,  promissory  note,  account, 
indorsement,  guaranty,  or  any  other  con- 
tract. * * * 


STATE  BANKS. 

BANKS  OF  DISCOUNT  AND  DEPOSIT. 

2976.  Save  as  otherwise  specially  pro- 
vided, the  entire  cost  of  land  and  buildings 
for  the  transaction  of  the  business  of  such 
a corporation,  including  premises  leased  to 
others,  shall  not  be  more  than  as  follows, 
assets  other  than  cash  being  taken  at  cash 
market  value : For  a Bk,  25%  of  its  ex- 


*See  Section  3022  under  Savings  Banks,  which 
allows  certain  railroad  and  municipal  securities. 


State  Banks  of  Discount  and  Deposit.  MINNESOTA. 


isting  capital  and  surplus.  Any  such  cor- 
poration may  change  its  location,  dispose 
of  its  place  of  business,  and  acquire  an- 
other, upon  the  written  approval  of  the 
examiner. 

2989.  No  director  shall  directly  or  indi- 
rectly, in  any  manner,  use  the  funds  of  the 
Bk.  or  any  part  thereof  except  in  its  regu- 
lar business  transactions,  and  every  loan 
made  to  any  of  its  directors,  officers,  ser- 
vants, or  agents  shall  be  upon  the  same 
security  required  of  others  and  in  strict 
conformity  to  its  rules  and  regulations. 
Every  such  loan  shall  be  made  by  the  board 
and  acted  upon  in  the  absence  of  the  appli- 
cant. 

2992.  It  shall  make  no  loan  or  discount 
on  the  security  of  its  own  capital  stock,  nor 
be  the  purchaser  or  holder  thereof  unless 
necessary  to  prevent  loss  upon  a debt  pre- 
viously contracted  in  good  faith,  and  all 
stock  so  acquired  shall  be  disposed  of  at 
public  or  private  sale  within  6 mos.  after 
it  is  so  acquired. 

2993.  The  total  liabilities  to  it,  as  princi- 
pal, surety,  or  endorser,  of  any  person, 
Corp.,  or  co-partnership,  including  the  lia- 
bilities of  the  several  members  thereof, 
shall  never  exceed  15%  of  its  capital  actu- 
ally paid  in  cash  and  of  its  actual  surplus 
fund.  Provided,  however,  that  loans  not 
exceeding  25%  of  such  capital  and  surplus 
made  upon  1st  Mtg.  security  on  improved 
farms  in  the  State  of  Minn.,  shall  not  con- 
stitute a liability  of  the  maker  of  the  notes 
secured  by  such  Mtgs.  within  the  meaning 
of  the  foregoing  provision  limiting  liability, 
but  shall  be  an  actual  liability  of  such 
maker;  provided,  that  such  Mtg.  loans  be 
limited  to,  and  in  no  case  to  exceed  40%  of 
the  cash  value  of  the  security  covered  by 
such  Mtg.  The  total  liability  of  any  officer 
or  director  shall  never  exceed  10%  of  the 
same  aggregate  amount.  But  the  discount 
of  the  following  classes  of  paper  shall  not 

11 


MINNESOTA.  State  Banks  of  Discount  and  Deposit. 

be  regarded  as  creating  liability  within  the 
meaning  of  this  section,  viz. : 

1.  Of  commercial  paper  actually  owned 
by  the  person  negotiating  the  same,  or  of 
the  bonds,  orders  or  warrants  of  any 
county,  town,  village,  or  Sch.  Dist.  in  this 
State. 

2.  Bills  of  exchange  drawn  in  good  faith 
against  actually  existing  values. 

3.  Paper  based  upon  the  collateral  secu- 
rity of  warehouse  receipts  covering  agri- 
cultural or  manufactured  products  stored 
in  elevators  or  warehouses  under  either  of 
the  following  conditions : 

1st.  When  the  actual  market  value  of  the 
property  covered  by  such  receipts  at  all 
times  exceeds  by  at  least  10%  the  amount 
loaned  thereon. 

2d.  When  the  full  amount  of  every  such 
loan  is  at  all  times  covered  by  fire  insurance 
in  duly  authorized  Co’s.,  within  the  limit 
of  their  ability  to  cover  such  amounts,  and 
the  excess,  if  any,  in  Co’s.,  having  sufficient 
paid-up  capital  to  authorize  their  admission, 
and  payable,  in  case  of  loss,  to  the  Bk.  or 
holder  of  the  warehouse  receipt,  unless 
accompanied  by  a certificate  of  the  R.  R. 
and  Warehouse  Commission  declaring  the 
warehouse  issuing  the  same  to  be  fireproof. 

2995.  The  real  estate  used  by  it  for  the 
transaction  of  its  business  may  include 
premises  leased  to  others,  provided  the  en- 
tire cost  does  not  exceed  25%  of  its  actual 
paid-in  capital  and  surplus.  It  shall  hold 
no  other  real  estate  longer  than  5 yrs.,  un- 
less such  time  has  been  extended  by  cer- 
tificate of  the  public  examiner  duly  filed 
for  record  with  the  register  of  deeds  of 
each  proper  county. 

2996.  * * * Whenever  its  reserve  shall 
become  impaired,  it  shall  make  no  new 
loans  or  discounts  except  upon  sight  bills 
of  exchange.  * * * 


12 


Banks  of  Deposit  and  Discount. 


MISSOURI. 


Municipal  Law  in  reel.  Street  Railway  Law  in 
Railroad  Law  in  green.  'brown. 

Other  matter  in  black. 


MISSOURI. 

Revised  Statutes  of  1907. 

In  effect  on  and  after  January  15,  1909. 

BANKS  OF  DEPOSIT  AND  DISCOUNT. 


(Chapter  12,  Article  VIII.) 


Sec.  4.  Every  such  Corp.  shall  be  author- 
ized and  empowered  to  conduct  the  business 
of  * * *,  loaning  money  upon  real  estate 
or  personal  property,  and  upon  collateral 
and  personal  securities,  at  a rate  of  interest 
not  exceeding  that  allowed  by  law,  and  also 
of  buying,  selling  and  discounting  negotiable 
and  non-negotiable  paper  of  all  kinds,  as  well 
as  all  kinds  of  commercial  paper;  and  for 
all  loans  and  discounts  made,  such  Corp. 
may  receive  and  retain  in  advance  the 
interest.  * * * 

Sec.  8.  Every  Bkg.  Corp.,  * * * shall,  at 
all  times,  have  an  amount  of  cash  on  hand, 
and  cash  due  from  other  Bks.  equal  to  at 
least  15%  of  the  aggregate  amount  of  its 
demand  deposits.  Whenever  the  reserve  of 
a Bk.,  as  hereinbefore  required,  shall  fall 
below  15%  of  its  demand  deposits,  then  such 
Bk.  shall  not  make  any  new  loans  or  dis- 
counts until  it  shall,  by  collections,  restore 
its  lawful  reserve. 

Sec.  9.  * * * No  director  or  officer  of  a 

Bk.  of  this  state  shall  be  permitted  to  bor- 
row  any  of  the  money  of  the  Bk.  in  which 
he  is  a director  or  officer  in  excess  of  10% 
of  the  capital  and  surplus  without  the  con- 
sent of  a majority  of  the  directors  of  the 
Bk.,  other  than  the  borrower,  first  having 
been  obtained  in  a regular  meeting  of  the 
board,  said  consent  to  be  made  a matter  of 
record  before  the  loan  is  made. 

* Sec.  19.  No  Corp.  now  existing,  nor  any 
hereafter  organized  under  any  law  of  this 

1 


MISSOURI. 


Banks  of  Deposit  and  Discount. 


state,  whether  general  or  special,  as  a Bk., 
or  to  carry  on  a Bkg.  business,  shall  employ 
its  moneys,  directly  or  indirectly,  in  trade 
or  commerce,  by  buying  and  selling  ordinary 
goods,  chattels,  wares  and  merchandise,  or 
by  owning  or  operating  industrial  plants : 
Provided,  that  it  may  sell  all  kinds  of  prop- 
erty which  may  come  into  its  possession  as 
collateral  security  for  loans,  or  in  the  ordi- 
nary collection  of  debts. 

Sec.  20.  No  incorporated  * * * Bk.  in  this 
state  shall  loan  its  money  to  any  individual, 
Corp.  or  Co.,  directly  or  indirectly,  or  per- 
mit any  individual  Corp.  or  Co.  to  become  at 
any  time  indebted  or  liable  to  it  in  a sum 
exceeding  25%  of  its  capital  stock,  actually 
paid  in,  or  permit  a line  of  loans  or  credits 
to  any  greater  amount  to  any  individual  or 
Corp. ; a permanent  surplus,  the  setting  apart 
of  which  shall  have  been  certified  to  the  Bk. 
Com.,  and  which  can  not  be  diverted  without 
due  notice  to  said  officer,  may  be  taken  and 
considered  as  a part  of  the  capital  stock  for 
the  purposes  of  this  Sec. : Provided,  said  sur- 
plus is  equal  to  or  in  excess  of  50%  of  the 
capital  stock  of  said  Bk. : Provided,  that  the 
provisions  in  this  Sec.  shall  not  be  so  con- 
strued as  in  anywise  to  interfere  with  the 
rules  and  regulations  of  any  clearing  asso- 
ciation in  this  state  in  reference  to  the  daily 
balances  between  Bks. : Provided,  that  this 
Sec.  shall  not  apply  to  balances  due  from 
correspondents  subject  to  draft;  And  pro- 
vided, further,  that  the  discount  of  the  fol- 
lowing classes  of  paper  shall  not  be  consid- 
ered as  money  borrowed  within  the  mean- 
ing of  this  Sec.,  viz.:  (1)  The  discount  of 
bills  of  exchange  drawn  in  good  faith  against 
actually  existing  values.  (2)  The  discount 
of  paper  based  upon  the  collateral  security 
of  warehouse  receipts,  covering  agricultural 
and  manufactured  products,  in  stores,  in 
elevators  and  warehouses,  under  the  follow- 
ing conditions : 1st,  that  the  actual  market 
value  of  the  property  held  in  store  and  cov- 
ered by  such  receipts  shall  at  all  times  ex- 
ceed by  at  least  20%  the  amount  loaned 


2 


Trust  Companies. 


MISSOURI. 


upon  same.  2d,  that  the  full  amount  of  the 
loans  shall  at  all  time  be  covered  by  policies 
of  fire  Ins.  issued  by  Cos.  admitted  to  do 
business  in  this  state  to  the  extent  of  their 
ability  to  cover  such  loans,  and  then  by  Cos. 
having  sufficient  paid-up  capital  to  be  so 
admitted,  and  all  such  policies  shall  be  made 
payable  in  case  of  loss  to  the  Bk.  or  holder 
of  the  warehouse  receipts. 

See  also  Art.  XX  at  the  end  of  Tr.  Cos. 


TRUST  COMPANIES. 


Revised  Statutes  of  1907. 

(Chapter  12,  Article  XII.) 

Sec.  5.  Corps,  may  be  created  under  this 
Art.  for  any  of  the  following  purposes  * * * 
8th,  to  loan  money  upon  real  estate  and  collat- 
eral security,  and  execute  and  issue  its  notes 
and  debentures  payable  at  a future  date,  and 
to  pledge  its  Mtgs.  on  real  estate  and  other 
securities  as  security  therefor,  which  notes 
and  debentures  may  be  issued  to  an  amount 
not  exceeding,  in  the  aggregate,  10  times  the 
amount  paid  up  on  the  capital  stock  of  the 
Co.  issuing  the  same,  and  shall  in  no  case 
exceed  the  amount  of  first  Mtgs.  pledged  to 
secure  their  payment;  9th,  to  buy  and  sell 
all  kinds  of  government,  state,  municipal 
and  other  bonds,  and  all  kinds  of  negotiable 
and  non-negotiable  paper,  stocks  or  other 
investment  securities. 

Sec.  5 a.  * * * Whenever  the  reserve  of  a 
Tr.  Co.,  as  herein  required,  shall  be  below 
15%  of  its  demand  deposits,  as  herein  above 
defined,  then  such  Tr.  Co.  shall  not  make  any 
new  loans  or  discounts  until  it  shall  restore 
its  lawful  reserve.  * * * 

Sec.  8.  * * * Whenever  the  reserve  of  a 

Tr.  Co.  as  hereinbefore  required  shall  fall 
below  15%  of  its  deposits,  then  such  Tr.  Co. 
shall  not  make  any  new  loans  or  discounts 
until  it  shall,  by  collections,  restore  its  law- 
ful reserve : Provided,  however,  that  de- 
posits made  with  such  Tr.  Co.  for  a definite 
and  specified  time,  and  not  subject  to  check, 


MISSOURI. 


Trust  Companies. 


shall  not  be  considered  in  determining  the 
aggregate  amount  of  deposits  at  any  given 
time,  as  contemplated  by  this  Sec. 

Sec.  9.  * * * No  director  or  officer  of  a 

Tr.  Co.  in  this  state  receiving  deposits  shall 
be  permitted  to  borrow  any  of  the  money 
of  the  Tr.  Co.  in  which  he  is  a director  or 
officer  in  excess  of  10%  of  the  paid-up  capi- 
tal and  surplus  without  the  consent  of  a 
majority  of  the  directors  of  the  Tr.  Co., 
other  than  the  borrower,  first,  having  been 
obtained  in  [a]  regular  meeting  of  the  board, 
said  consent  to  be  made  a matter  of  record 
before  the  loan  is  made. 

Sec.  10.  The  directors  of  Corps,  created 
under  this  Art.  shall  have  power  of  invest- 
ing the  moneys  placed  in  their  charge  in  loans 
secured  by  real  estate  or  other  sufficient  col- 
lateral security,  in  public  bonds  of  the  U.  S., 
or  of  this  state,  or  in  the  bonds  or  stock  of 
any  incorporated  city  or  county  in  this  state. 
Such  Corp.  shall  own  only  such  real  estate 
as  may  be  required  for  the  transaction  of 
their  business,  and  such  as  they  may  require 
in  the  enforcement  and  collection  of  debts 
or  liabilities  due  to  them.  * * * 

Sec.  18.  Any  Co.  now  doing  business  in 
this  state,  or  which  may  hereafter  be  or- 
ganized under  the  provisions  of  this  Art.  to 
do  business  in  this  state,  which  shall  make 
with  the  Supt.  of  the  Ins.  Dept,  a deposit 
of  $200,000,  consisting  of  cash,  treasury 
notes  of  the  U.  S.,  or  government,  state, 
county,  municipal  or  other  bonds,  or  bonds, 
notes  or  debentures  secured  by  1st  Mtgs. 
or  deeds  of  Tr.  on  unencumbered  real  estate 
in  the  state  of  Mo.,  worth  at  least  double 
the  amount  loaned  thereon,  or  such  other 
first-class  securities  as  the  said  Supt.  may 
approve,  said  bonds  or  securities  not  to  be 
received  or  held  at  a rate  above  par,  but  if 
their  market  value  is  less  than  par,  they  shall 
not  be  held  above  their  actual  market  value, 
and  which  shall  satisfy  said  Supt.  of  its  solv- 
ency, and  shall  have  received  the  certificate 
of  said  Supt.  that  such  Co.  has  made  said 
deposit  and  has  satisfied  him  of  its  solvency, 


Savings  and  Safe  Deposit  Institutions. 


it  being  hereby  made  the  duty  of  said  Supt. 
to  issue  such  certificate  in  accordance  with 
the  facts,  shall  be  permitted  to  qualify  as 
guardian,  curator,  executor,  administrator, 
assignee,  receiver,  trustee,  by  appointment  of 
any  court,  or  under  will,  or  depository  of 
money  in  court,  without  giving  bond  a? 
such.  * * * 

And  in  case  the  interest  on  any  security 
deposited  with  the  Supt.  of  the  Ins.  Dept, 
under  this  Sec.  shall  not  be  paid  at  maturity, 
and  shall  remain  unpaid  for  6 mos.  there- 
after, it  shall  be  his  , duty  to  require  the  Co. 
which  deposited  the  same  to  remove  them 
and  deposit  in  their  place  other  securities, 
equal  in  amount  to  those  removed,  upon 
which  the  interest  has  not  been  de- 
faulted. * * * 

(Chapter  12,  Article  XX.) 

Sec.  15.  No  Bk.,  Sav.  & Safe  Dep.  Co.  or 
Tr.  Co.  receiving  deposits  shall  make  any 
loan  or  discount  on  the  security  of  the  shares 
of  its  own  capital  stock,  nor  be  the  pur- 
chaser or  holder  of  any  such  shares,  unless 
such  security  or  purchase  shall  be  necessary 
to  prevent  loss  upon  a debt  previously  con^ 
tracted  in  good  faith;  and  stock  so  purchased 
or  acquired  shall,  within  6 mos.,  from  the 
time  of  its  purchase,  be  sold  or  disposed  of 
at  public  or  private  sale.  * * * 

SAVINGS  AND  SAFE  DEPOSIT  INSTITUTIONS. 

Revised  Statutes  of  1907. 

Sec.  7.  Corps,  may  be  created  under  this 
Art. : 1st,  for  the  purpose  of  receiving,  for 
accumulation  and  safe  keeping,  and  deposit 
of  money,  from  any  person,  Corp.  or  society, 
and  investing,  holding  and  repaying  the  same, 
crediting  and  paying  interest  thereon,  as  in 
this  Art.  authorized  and  provided,  and  not 
otherwise.  * * * 

All  sums  so  received,  except  those  held  as 
bailee  for  safe  keeping  and  storage  only,  and 
the  income  derived  therefrom,  and  all 


MISSOURI.  Savings  and  Safe  Deposit  Institutions. 

moneys  entrusted  to  any  such  Corp.,  by  or- 
der of  court  or  other  lawful  authority,  shall 
be  invested  only  as  follows: 

ist.  In  bonds  or  interest-bearing  notes  or 
obligations  of  the  U.  S.,  or  those  for  which 
the  faith  of  the  U.  S.  is  pledged  for  the 
payment  of  the  interest  and  principal. 

2d.  In  bonds  of  this  state  bearing  interest. 
3d.  In  bonds  of  any  state  in  the  Union 
that  has  not,  within  5 yrs.  previous  to  mak- 
ing such  investments  by  such  Corp.,  de- 
faulted in  the  payment  of  any  part  of  either 
principal  or  interest  thereof. 

4th.  In  bonds  of  any  city,  county,  town, 
township  or  Sch.  Dist.  of  this  state  that  has 
not  defaulted  in  the  payment  of  any  part  of 
either  principal  or  interest  thereof,  within 
5 yrs.  previous  to  making  such  investment ; 
and  provided,  such  bonded  debt  does  not 
exceed  5%. 

5th.  In  the  bonds  of  any  city,  town  or 
county  which  had,  in  each  case,  at  the  time 
of  the  investment,  more  than  20,000  inhabi- 
tants, as  ascertained  by  the  U.  S.  or  state 
census  made  next  preceding  such  investment 
in  the  states  of  111.,  Ohio,  Ind.,  Mich.,  Iowa, 
Kans.,  Neb.,  Wis.,  Colo,  or  Texas,  issued 
pursuant  to  the  authority  of  any  law  of  such 
states : Provided,  the  entire  bonded  debt  of 
such  city  or  county  shall  not  exceed  5%  of 
the  assessed  value  of  the  taxable  property 
therein,  including  the  issue  of  bonds  in 
which  said  investment  is  made,  as  shown  by 
the  last  assessment  preceding  the  investment : 
And,  provided  further,  that  such  city,  town 
or  county,  or  state  in  which  it  is  situated, 
has  not  defaulted  in  the  payment  of  any 
part  of  either  principal  or  interest  thereof 
within  5 yrs.  previous  to  making  such  invest- 
ment. It  shall  not  be  lawful  for  any  Sav. 
Tnst.  organized  under  this  Art.  to  invest  more 
than  25%  of  its  assets  in  the  bonds  of  cities, 
towns  or  counties  situated  outside  of  this 
state,  nor  to  invest  more  than  3%  of  its  as- 
sets in  the  bonds  of  any  one  of  such  cities, 
towns  or  counties,  nor  to  invest  in  more  than 
to%  of  all  the  bonds  issued  by  any  such  city, 


Savings  and  Safe  Deposit  Institutions.  MISSOURI. 


town  or  county,  nor  to  make  any  invest- 
ment in  the  bonds  of  any  city,  town  or  county 
situated  out  of  this  state,  which  has  been  or 
shall  be  issued  to  aid  in  the  construction  of 
any  R.  R. 

6th.  In  the  ist  Mtg.  bonds  of  any  steam 
Rwy.,  the  income  of  which  is  sufficient  to 
pay  all  operating  expenses  and  fixed  charges, 
and  which  is  completed  and  operated,  wholly 
or  in  part,  in  the  following  named  states : 
Mo.,  Ind.,  Iowa,  Minn.,  Kans.,  Neb.,  Colo., 
Mich.,  111.,  Wis.,  Ark.,  Texas,  and  Ohio,  and 
which  has  paid  the  interest  as  it  became  due 
on  its  bonds  for  3 yrs.  next  preceding  such 
investment,  or  in  the  ist  Mtg.  bonds  of  the 
Cent.  Pac.,  Nor.  Pac.,  Union  Pac.,  N.  Y. 
Cent.,  West  Shore  and  Penn.  Rwy.  Cos. 

7th.  In  bonds  or  notes  secured  by  ist 
Mtgs.  or  deeds  of  Tr.  on  unencumbered  real 
estate,  worth  at  least  twice  the  amount 
loaned  thereon ; but  in  case  the  loan  is  on 
unimproved  and  unproductive  real  estate,  the 
amount  loaned  shall  not  be  more  than  40% 
of  its  actual  value ; but  not  to  exceed  60% 
of  the  whole  amount  of  the  funds  of  the 
Corp.  shall  be  so  loaned  or  invested ; and 
no  investment  in  any  bond  or  notes  so  se- 
cured shall  be  made,  except  upon  the  report 
of  a committee  charged  with  the  duty  of  in- 
vestigating the  same,  who  shall  certify  to  the 
value  of  the  premises  mortgaged,  according 
to  their  best  judgment,  and  such  report  shall 
be  filed  and  preserved  among  the  records  of 
the  institution. 

8th.  In  real  estate,  subject  to  the  provi- 
sions of  Sec.  8 of  this  Art. — It  shall  be  the 
duty  of  the  directors  of  any  such  Corp.,  as 
soon  as  practicable,  to  invest  such  fund  of 
money,  by  purchase  or  otherwise,  in  the 
securities  named  in  Secs.  7 and  8 of  this  Art., 
with  power  from  time  to  time  to  sell  and 
reinvest  the  proceeds  of  such  investment;  but 
for  the  purpose  of  meeting  current  payments 
and  expenses  in  excess  of  the  receipts,  any 
of  the  securities  may  be  sold  or  pledged ; and 
there  shall  be  kept  an  available  cash  fund  of 
not  less  than  15%  of  the  whole  amount  of 


MISSOURI.  Savings  and  Safe  Deposit  Institutions. 


its  assets,  and  the  same,  or  any  part  thereof, 
together  with  the  current  receipts  over  the 
payments,  may  be  kept  on  hand  or  on  de- 
posit, payable  on  demand,  in  any  Bk.  or  Bkg. 
Asso.  in  the  state  of  Mo.,  organised  under 
any  law  of  this  state  or  of  the  U.  S.,  or 
with  any  Safe  Dep.  Co.  or  Tr.  Co.  incor- 
porated under  the  laws  of  this  state.  The  de- 
posits in  any  one  Bk.,  Safe  Dep.  or  Tr.  Co. 
shall  not  exceed  20%  of  the  total  deposits, 
capital  and  surplus  of  the  depositing  Bk. 

Sec.  8.  It  shall  be  lawful  for  such  Corp. 
to  purchase,  hold,  sell  and  convey  real  estate, 
as  follows : 

1st.  A plot  whereon  is  erected  or  to  be 
erected  a building  or  buildings  requisite  for 
the  convenient  transaction  of  its  business, 
and  from  portions  of  which,  not  required  for 
its  own  use,  a revenue  may  be  derived,  the 
cost  not  to  exceed  the  sum  of  $100,000,  ex- 
cept in  cities  of  over  300,000  inhabitants,  when 
the  cost  shall  not  exceed  $250,000. 

2d.  Such  as  shall  be  purchased  by  it  at 
sales  upon  the  foreclosure  of  Mtgs.  or  deeds 
of  Tr.  owned  by  such  Corp.,  or  upon  judg- 
ments of  decrees  rendered  for  debts  due  to 
it,  or  purchased  or  taken  in  settlements  to 
secure  such  debts ; and  all  such  real  estate 
mentioned  in  this  clause  shall  be  sold  by 
such  Corp.  within  5 yrs.  after  the  same  shall 
be  vested  in  it,  unless  the  Bk.  Com.  shall 
extend  the  time  within  which  such  sale  shall 
be  made.  No  such  Corp.,  nor  any  person 
acting  in  its  behalf,  shall  negotiate,  take  or 
receive  a fee,  brokerage,  commission  or  gift, 
or  other  consideration,  for  or  on  account  of 
a loan  made  by  and  in  behalf  of  such  Corp. 
other  than  appears  on  the  face  of  the  note 
or  contract  by  which  such  loan  purports  to 
be  made;  but  nothing  contained  herein  shall 
apply  to  any  reasonable  charge  for  services 
in  the  examination  of  titles  and  the  prepara- 
tion of  conveyance  to  such  Corp.  as  security 
for  its  loans.  All  sums  paid  for  services, 
fees  or  otherwise,  to  a member  of  the  board 
of  directors  shall  be  reported  in  detail  at 
each  regular  meeting  of  the  directors.  All 


s 


Savings  and  Safe  Deposit  Institutions.  MISSOURI. 


applications  for  loans  shall  be  made  in  writ- 
ing through  the  treasurer  of  the  Corp.,  who 
shall  keep  a record  thereof,  showing  the 
date,  name  of  applicant,  amount  asked  or 
the  security  offered,  and  shall  cause  the  same 
(same)  to  be  presented  to  the  board  of 
directors. 

Sec.  9.  It  shall  be  unlawful  for  any  such 
Corp.  to  deal  or  trade  in  real  estate,  ex- 
cept as  provided  in  Sec.  8 of  this  Art.,  or 
to  deal  or  trade  in  goods,  wares  and  mer- 
chandise or  commodities  whatever,  except  as 
authorized  by  the  terms  of  this  Art.,  and  ex- 
cept such  personal  property  as  may  be  neces- 
sary in  the  transaction  of  its  business  as  by 
this  Art.  authorized;  or  to  loan  money  upon 
or  to  discount  or  deal  in  notes,  bills  of  ex- 
change or  other  personal  security,  or  to  trans- 
act any  banking  business,  whether  of  issue, 
deposit  or  discount.  The  board  of  directors 
may,  however,  make  loans  to  the  depositors, 
not  exceeding  50%  of  the  amount  on  deposit 
by  such  depositor  at  the  date  the  loan  is 
made;  and  in  such  case  the  deposit  and  the 
book  of  the  depositor  shall  be  held  by  the 
Corp.  as  collateral  security  for  the  payment 
of  such  loan. 

Sec.  10  * * * And  no  director  or  officer 

of  such  Corp.  shall,  directly  or  indirectly,  for 
himself  or  as  the  agent  or  partner  of  others, 
borrow  any  of  the  funds  of  the  Corp.  or  in 
its  custody,  or  in  any  manner  use  the  same, 
except  to  make  necessary  current  payments 
for  the  Corp.,  or  to  make  investments  or  to 
deposit  for  safety,  under  the  direction  and 
authority  of  the  board  of  directors;  nor  shall 
any  director  or  officer  of  such  Corp.  be  an 
indorser  or  surety,  or  in  any  manner  be  an 
(obligator)  [obligor]  for  moneys  loaned  by 
or  borrowed  of  the  Corp. 

See  also  Art.  XX  at  the  end  of  Tr.  Cos. 


Savings  Banks. 


NEBRASKA. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


NEBRASKA. 

Corrected  to  and  including  1913  Session. 


SAVINGS  BANKS. 

Chapter  8. 

Sec.  23.  * * * * Whenever  the  available 
funds  of  any  Bk.  shall  fall  below  the  reserve 
herein  required,  such  Bk.  shall  not  make  any 
new  loans  or  discount  otherwise  than  by  dis- 
counting or  purchasing  bills  of  exchange  pay- 
able at  sight;  * * * * 

Sec.  25.  No  Corp.  transacting  a B’k’g.  busi- 
ness shall  make  any  loan  or  discount  on  the 
security  of  the  shares  of  its  own  capital  stock, 
nor  be  the  purchaser  or  holder  of  any  such 
shares,  or  the  shares  of  any  Corp.,  unless  such 
security  or  purchase  shall  be  necessary  to  pre- 
vent loss  upon  a debt  previously  contracted  in 
good  faith ; and  such  stock  so  purchased  or  ac- 
quired shall  within  6 mos.  from  the  time  of  its 
purchase  be  sold  or  disposed  of  at  public  or 
private  sale;  * * * * Provided,  that  in  no  case 
shall  the  amount  of  stock  so  held,  exceed  10% 
of  the  paid  up  capital  of  such  Bk. 

Sec.  32.  No  officer  other  than  a director, 
who  is  not  an  officer  and  no  employee  of  any 
Corp.  transacting  a B’k’g.  business  under  this 
act  shall  be  permitted  to  borrow  any  of  the 
funds  of  the  Bk.  directly  or  indirectly,  and  no 
director  of  a Bk.  shall  be  permitted  to  borrow 
any  of  the  funds  of  the  Bk.  without  first  hav- 
ing secured  the  approval  of  the  board  of  di- 
rectors at  a meeting  thereof,  the  record  of 
which  shall  be  made  and  kept  as  part  of  the 
records  of  said  Bk.  * * * * 

Sec.  36.  * * * * The  loanable  funds  of  any 
Sav.  Bk.,  except  the  reserve  provided  for  in 
this  act,  shall  be  invested  in  bonds  of  the  U.  S., 
or  of  any  state  of  the  U.  S.  or  in  the  public 
debt  or  bonds  of  any  city,  county,  township, 
village  or  sch.  dist.  of  any  state  of  the  U.  S., 
which  shall  have  been  authorized  by  the  legis- 
lature of  the  state,  or  when  approved  by  the 
State  Banking  Board  in  other  bonds  of 


NEBRASKA. 


State  Banks. 


known  marketable  value,  or  shall  be  loaned 
on  negotiable  paper,  secured  by  any  of  the 
above  mentioned  classes  of  security,  or  upon 
notes  or  bonds  secured  by  Mtg.  lien  upon 
unincumbered  real  estate;  Provided,  that  2d 
Mtg.  loans  may  be  made  on  improved  farm 
lands,  but  no  loans  shall  be  made  on  such 
improved  farm  lands,  or  other  real  estate 
which  including  the  aggregate  amount  of  in- 
cumbrance thereon,  shall  exceed  50%  of  the 
cash  value  thereof,  or  upon  notes  secured  by 
collateral  security  of  known  marketable  value, 
or  held  as  cash,  or  shall  be  deposited  in  good 
solvent  Bks. ; Provided,  that  chattel  Mtgs.  shall 
not  be  deemed  collateral  security  and  Sav. 
Bks.  are  hereby  prohibited  from  investing 
their  funds  in  them. 

Parts  of  Secs.  22  and  24,  under  State  Bks., 
also  apply  to  Sav.  Bks. 

STATE  BANKS. 

Chapter  8. 

Sec.  22.  Every  Bk.  shall  at  all  times  have 
on  hand  as  a reserve  in  available  funds  an 
amount  equal  to  at  least  15%  of  the  aggre- 
gate amount  of  its  deposits.  J^d  of  said  15% 
shall  be  cash  in  the  vaults  of  the  Bk. ; Pro- 
vided that  in  cities,  having  a population  of 
more  than  25,000,  said  reserves  shall  be  20% 
of  the  aggregate  amount  of  the  deposits.  2-5ths 
of  said  20%  shall  be  in  cash  in  vaults  of  the 
bank;  Provided,  further,  that  Sav.  Bks.  shall 
have  on  hand  at  all  times  as  a reserve  in  avail- 
able funds  an  amount  equal  to  at  least  5%  of 
their  aggregate  deposits ; and  Provided,  that  no 
part  of  said  reserve  fund  which  is  not  required 
to  be  kept  in  cash  in  the  vaults  of  the  Bk. 
shall  be  kept  in  any  depository  which  in  the 
opinion  of  the  state  banking  board  would  not 
be  a proper  and  safe  custodian  of  such  re- 
serve fund. 

Sec.  24.  The  aggregate  amount  of  the  re- 
discounts and  bills  payable  of  any  Corp.  trans- 
acting a banking  business  in  this  state  shall  at 
no  time  exceed  ?/£rds  of  its  paid  up  capital  ex- 
cept for  payment  of  its  depositors  nor  shall 
any  Bk.  other  than  Sav.  Bks.  at  any  time  per- 


2 


State  Banks. 


NEBRASKA. 


mit  its  loans  and  investments,  exclusive  of 
its  reserve  and  banking  house  and  fixtures,  to 
exceed  in  the  aggregate  io  times  the  amount 
of  its  capital  and  surplus. 

A Sec.  29.  Any  corporation  transacting  a 
^ banking  business  under  this  act  may  purchase, 
hold  and  convey  real  estate  for  the  following 
purposes  only:  such  as  is  necessary  for  con- 
venient transaction  of  its  business,  not  ex- 
ceeding in  value  Yzd  of  the  paid  up  capital; 
such  as  shall  be  conveyed  to  it  for  debts  due 
the  Bk.,  and  such  as  it  shall  purchase  at  sale 
under  judgments  or  decrees  upon  its  securi- 
ties, but  the  Bk.  at  such  sale  shall  not  bid  a 
larger  amount  than  to  satisfy  its  debts.  No 
real  estate  so  acquired  in  satisfaction  of  debts 
or  at  a sale  upon  its  judgments  or  decrees 
shall  be  held  longer  than  5 yrs.  and  within 
30  days  thereafter  must  be  sold  at  private 
or  public  sale,  and  at  no  time  shall  the  total 
amount  of  real  estate  held  by  any  Bk.  for 
any  purpose  exceed  50%  of  the  paid  up  capi- 
tal of  such  Bk.  Sav.  Bks.  shall  not  be  sub- 
ject to  the  provisions  of  this  Sec. 

Sec.  33.  No  corporation  transacting  a 
banking  business  in  this  state  shall  directly 
or  indirectly,  loan  to  any  single  corporation, 
firm  or  individual,  including  in  such  loan 
all  loans  made  to  the  several  members  or 
shareholders,  of  such  firm  or  corporation,  for 
the  use  and  benefit  of  such  firm,  corporation 
or  individual,  more  than  20%  of  the  paid  up 
capital  and  surplus  of  such  Bk.,  but  the  dis- 
counting of  bills  of  exchange,  drawn  in  good 
faith,  against  actually  existing  values,  and 
the  discount  of  commercial  paper  actually 
owned  by  the  persons  negotiating  the  same, 
shall  not  be  considered,  as  money  borrowed 
and  in  no  case  shall  the  total  liabilities  of  the 
several  stockholders  of  any  Bk.  to  such  Bk.  ex- 
p ceed  50%  of  the  paid-in  capital  and  surplus  of 
such  Bk.  * * * * Provided,  however,  that  the 
provisions  of  this  Sec.  shall  not  apply  to  the 
securities  of  the  Sav.  Bks.  enumerated  in  Sec. 
36  of  this  Act. 

Secs.  23,  25,  and  32  under  Sav.  Bks.  also 
apply  to  State  Bks. 


3 


■ 


it 

* 


Savings  Banks. 


NEW  HAMPSHIRE. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


NEW  HAMPSHIRE. 


Corrected  to  and  including  1911  Session. 
SAVINGS  BANKS. 


Sec.  1.  On  and  after  the  passage  of  this 
act,  Sav.  Bks.  and  Sav.  Depts.  of  banking  and 
Tr.  Co’s,  shall  make  investment  of  their  funds 
in  the  following  classes  of  securities  only: 

1st.  In  notes  secured  by  first  mortgage  of 
real  estate  situated  in  N.  H.,  but  not  over  70% 
of  the  value  of  the  property  covered  shall  be 
so  loaned,  and  not  exceeding  70%  of  the  de- 
posits shall  be  so  invested. 

2d.  In  notes  secured  by  1st  Mtg.  of  real 
estate  situated  outside  of  N.  H.  which  is  at 
the  time  improved,  occupied,  and  productive, 
but  not  over  50%  of  the  value  of  the  property 
covered  shall  be  so  loaned,  and  not  exceed- 
ing 25%  of  the  deposits  shall  be  so  invested. 

3d.  In  notes  secured  by  collateral  in  which 
the  Bk.  is  at  liberty  to  invest  of  a value 
at  least  10%  in  excess  of  the  face  of  the  note. 
The  amount  of  any  one  class  of  securities  so 
taken  as  collateral,  added  to  that  which  the 
Bk.  may  own  at  the  time,  shall  not  exceed  the 
total  limit  of  that  class  of  security,  but  not 
exceeding  25%  of  the  deposits  shall  be  so 
invested. 

4th.  In  notes  secured  by  collateral  securi- 
ties which  are  dealt  in  on  the  stock  exchanges 
of  Boston  and  New  York,  the  stock  exchange 
price  of  which  shall  at  all  times  be  at  least 
20%  in  excess  of  the  face  of  the  note,  while 
held  by  the  bank,  but  not  exceeding  25%  of 
the  deposits  shall  be  so  invested. 

5th.  In  notes  of  individuals  or  corporations 
with  two  or  more  signers,  or  one  or  more 
endorsers,  but  not  exceeding  5%  of  the  de- 
posits shall  be  loaned  any  one  person  or  cor- 
poration in  this  class  of  security,  and  not  ex- 
ceeding 25%  of  the  deposits  shall  be  so 
invested. 


NEW  HAMPSHIRE. 


Savings  Banks. 


6th.  In  the  public  funds  of  the  U.  S.,  or 
those  for  which  the  faith  of  the  U.  S.  is 
pledged  to  provide  for  the  payment  of  the  in- 
terest and  principal. 

7th.  In  the  bonds  and  notes  of  this  state, 
or  of  any  county,  city,  town,  precinct,  or  dist. 
of  this  state. 

8th.  In  the  authorized  bonds  or  notes  of 
any  state  or  territory  of  the  U.  S. ; and  in 
the  bonds  or  notes  of  any  city  of  the  states 
of  Me.,  Vt.,  Mass.,  R.  I.,  Conn.,  or  N.  Y., 
whose  net  debt  does  not  exceed  5%  of  the  last 
preceding  valuation  of  the  property  therein 
for  taxation,  or  of  any  county,  town,  village, 
precinct,  or  dist.  in  said  states  whose  net  debt 
does  not  exceed  3%  of  such  valuation. 

9th.  In  the  authorized  bonds  of  any  county, 
city,  towm,  sch.  dist.,  or  other  municipal  cor- 
poration of  any  other  of  the  U.  S.  or  terri- 
tories whose  net  debt  at  the  time  of  such 
investment  does  not  exceed  5%  of  the  last 
preceding  valuation  of  the  property  therein 
for  taxation ; and  in  the  authorized  bonds  of 
any  city  of  100,000  inhabitants  of  any  of  said 
states  whose  net  debt  does  not  exceed  7%  of 
the  last  preceding  valuation  of  the  property 
therein  for  taxation.  The  term  “ net  debt  ” 
shall  be  construed  to  denote  the  debt  of  any 
city,  town,  or  other  municipal  corporation, 
omitting  the  debt  created  for  supplying  the 
inhabitants  with  water  and  deducting  the 
amount  of  any  sinking  fund  available  for  the 
payment  of  the  municipal  debt.  Provided, 
however,  that  such  bonds  shall  not  have  been 
issued  in  aid  of  R.  Rs.  or  for  special  assess- 
ment purposes.  Provided,  also,  that  the  bonds 
of  an)'  county,  city,  or  town,  of  less  than 
10,000  inhabitants,  or  of  any  sch.  dist.  or  other 
municipal  corporation  of  less  than  2,000  in- 
habitants in  any  state  or  territory  other  than 
those  named  in  paragraph  8 of  sec.  1 of 
this  act  shall  not  be  authorized  investments. 
Provided,  further,  that  such  bonds  are  is- 
sued by  municipalities  that  are  permitted  by 
law  to  levy  taxes  sufficient  to  pay  the  interest 
and  to  provide  sinking  funds  for  their  debt : 
otherwise  such  bonds  shall  not  be  authorized 


2 


Savings  Banks. 


NEW  HAMPSHIRE. 


investments.  But  not  exceeding  50%  of  the  de- 
posits shall  be  so  invested. 

10th.  In  the  bonds  or  notes  of  any  R.  R. 
Co.,  except  St.  Rwys.,  incorporated  under  the 
laws  of  this  state,  whose  road  is  located  wholly 
or  in  part  in  the  same,  but  not  exceeding  25% 
of  the  deposits  shall  be  so  invested. 

nth.  In  the  bonds  of  any  R.  R.  Co.,  except 
St.  Rwys.,  incorporated  under  the  authority 
of  any  of  the  New  Eng.  states  whose  road 
is  located  wholly  or  part  in  the  same,  and 
which  is  in  possession  of  and  operating  its 
own  road,  and  has  earned  and  paid  regular 
dividends  for  the  2 years  next  preceding  such 
investment,  or  in  the  bonds  guaranteed  or 
assumed  by  such  R.  R.  Co.,  but  not  exceeding 
25%  of  the  deposits  shall  be  so  invested. 

12th.  In  the  bonds  of  any  R.  R.  Co.,  except 
St.  Rwys.,  incorporated  under  the  authority 
of  any  of  the  U.  S.  or  territories,  which  is  in 
possession  of  and  operating  its  own  road  and 
has  earned  and  paid  regular  dividends  of  not 
less  than  4%  per  annum  on  its  capital  stock 
for  the  3 years  next  preceding  such  invest- 
ment; Provided,  such  capital  stock  on  which  it 
earns  and  pays  dividends  equals  in  amount 
l/3 d of  the  entire  bonded  indebtedness  of  said 
road ; or  in  the  bonds  guaranteed  or  assumed 
by  such  R.  R. ; but  not  exceeding  25%  of  the 
deposits  shall  be  so  invested. 

13th.  In  the  1st  Mtg.  bonds  of  corporations 
of  this  state,  except  St.  Rwys.,  located  and 
doing  business  therein,  whose  net  debt  at  the 
time  of  such  investment  does  not  exceed  its 
capital  stock  actually  paid  in  and  remaining 
unimpaired,  but  not  exceeding  10%  of  the  de- 
posits shall  be  so  invested. 

14th.  In  the  bonds  of  St.  Rwy.  corporations 
incorporated  under  the  laws  of  this  state  and 
located  wholly  or  in  part  in  the  same,  and  in 
the  bonds  of  St.  Rwy.  corporations  located 
wholly  or  in  part  in  cities  of  30,000  inhabi- 
tants or  more  in  any  of  the  other  New  Eng. 
states,  and  in  the  bonds  of  St.  Rwy.  corpora- 
tions located  wholly  or  in  part  in  cities  of 
50,000  inhabitants,  or  more,  in  any  of  the 
U.  S.,  provided,  that  the  net  debt  of  any  of 


HAMPSHIRE. 


Savings  Banks. 


such  St.  Rvvy.  corporations  mentioned  in  this 
paragraph  does  not  exceed  the  capital  stock 
actually  paid  in  and  remaining  unimpaired  at 
the  time  of  such  investment,  and  that  such 
corporation  has  earned  and  paid  regular  divi- 
dends of  not  less  than  4%  per  annum  on 
its  capital  stock  for  5 years  next  preceding 
such  investment ; but  not  exceeding  10%  of  the 
deposits  shall  be  so  invested. 

15th.  In  the  bonds  of  Telephone,  Telegraph, 
or  Express  Co’s  doing  business  in  the  U.  S. 
or  territories,  Provided,  the  total  debt  of  such 
company  does  not  exceed  its  capital  actually 
paid  in  and  remaining  unimpaired,  and  Pro- 
vided, such  company  has  earned  and  paid  reg- 
ular dividends  of  at  least  4%  per  annum  upon 
its  capital  stock  or  shares  for  5 years  previous 
to  such  investment,  but  not  exceeding  10% 
of  the  deposits  shall  be  so  invested. 

16th.  In  the  capital  stock  of  any  Banking 
or  Tr.  Co.,  incorporated  under  the  laws  of 
this  state  and  doing  business  therein,  but  the 
amount  of  such  stock  held  by  any  Sav.  Bk. 
as  an  investment  and  as  collateral  for  loans 
shall  not  exceed  i-ioth  of  the  total  capital 
stock  of  such  Banking  or  Tr.  Co.,  and  not  ex- 
ceeding 10%  of  the  deposits  shall  be  so 
invested. 

17th.  In  the  stock  of  any  Nat.  Bk.  or  Tr. 
Co.  located  in  the  New  Eng.  states  or  the 
state  of  N.  Y.,  but  not  exceeding  10%  of  the 
deposits  of  a Sav.  Bk.  shall  be  invested  in 
such  stock;  the  amount  of  stock  in  any  Nat. 
Bk.  or  Tr.  Co.  in  this  state  which  may  be 
held  by  any  Sav.  Bk.  as  an  investment  or 
as  collateral  security  for  loans  shall  not  ex- 
ceed 25%  of  the  capital  stock  of  said  Nat. 
Bk.  or  Tr.  Co.;  and  the  amount  of  stock 
in  any  Nat.  Bk.  or  Tr.  Co.  outside  of  this 
state  which  may  be  held  by  any  Sav.  Bk.  as 
an  investment  or  as  collateral  for  loans  shall 
not  exceed  i-ioth  of  the  capital  stock  of 
said  Nat.  Bk.  or  Tr.  Co. 

iSth.  In  the  stock  or  notes  of  any  R.  R. 
corporation,  exclusive  of  St.  Rwys.,  located 
in  any  part  of  the  U.  S.  or  territories  that 
has  earned  and  paid  regular  dividends  of 

4 


Savings  Banks. 


NEW  HAMPSHIRE. 


not  less  than  4%  per  annum  on  its  capital 
stock  for  5 years  next  preceding  such  invest- 
ment; Provided,  such  capital  stock  on  which 
it  pays  dividends  equals  in  amount  J4d  of 
the  entire  bonded  debt  of  said  corporation; 
I or  in  the  stock  of  any  other  R.  R.  corpora- 
tion whose  R.  R.  and  R.  R.  property  are 
leased  to  such  R.  R.  upon  an  annual  rental 
of  not  less  than  4%  per  annum  upon  the 
capital  stock  of  the  leased  R.  R. : Provided, 
said  leased  R.  R.  shall  have  earned  dividends 
of  not  less  than  3%  upon  its  capital  stock  for 
a period  of  3 years  immediately  preceding 
said  lease ; but  not  exceeding  25%  of  the 
deposits  shall  be  so  invested. 

19th.  In  the  stock  or  notes  of  any  Manu- 
facturing Co.  in  the  New  Eng.  states  that 
has  paid  regular  dividends  on  its  capital 
stock  for  5 years  previous  to  such  invest- 
ment, and  whose  net  debt  does  not  exceed 
the  amount  of  its  capital  stock  fully  paid  in ; 
but  not  exceeding  10%  of  the  deposits  shall 
be  so  invested. 

20th.  In  the  stock  or  notes  of  any  Parlor 
Car  or  Sleeping-car  Company  incorporated 
and  doing  business  in  the  U.  S.,  and  whose 
cars  are  in  actual  use  upon  any  R.  R.  whose 
stock  is  a legal  investment  for  N.  H.  Sav. 
Bks.  and  that  has  earned  and  paid  regular 
dividends  of  not  less  than  4%  per  annum  on 
its  capital  stock  for  5 years  next  preceding- 
such  investment;  but  not  exceeding  5%  of 
the  deposits  shall  be  so  invested. 

21st.  In  land  and  buildings  suitable  and 
actually  used  by  it  in  part  for  its  banking 
room,  the  total  cost  of  which  shall  not  ex- 
ceed 10%  of  its  deposits. 

Sec.  2.  Any  Sav.  Blc.  may  hold  and  lease 
real  estate  acquired  by  foreclosure  of  mort- 
gages owned  by  the  bank;  but  all  taxes,  fore- 
closures expenses,  and  cost  of  maintenance 
P shall  be  paid  out  of  the  income  of  the  bank. 

Sec.  3.  Deposits  of  cash  on  call,  or  sub- 
ject to  check,  shall  be  made  in  some  author- 
ized Banking  or  Tr.  Co.  incorporated  under 
the  laws  of  this  state  or  Mass.,  or  in  some 
Nat.  Bk.  located  in  the  New  Eng.  states,  or 

5 


NEW  HAMPSHIRE. 


Savings  Banks. 


in  the  cities  of  New  York  or  Philadelphia. 

Sec.  4.  The  special  deposits  or  guaranty 
fund  of  a Guaranty  Sav.  Bk.  shall  not  be  in- 
cluded in  the  amount  of  deposits  on  which 
the  percentage  of  any  investment  is  reckoned. 

STATE  BANKS  AND  TRUST  COMPANIES. 

Laws  of  1895,  Ch.  105,  Sec.  10.  No  loan 
shall  be  made  to  an  officer  or  director  of  a 
State  Bk.  or  Tr.  Co.  except  by  the  unani- 
mous approval  of  the  board  of  directors  in 
writing. 

Pub.  Stat.,  Ch.  165,  Sec.  18.  Tr.  Co’s.  Loan 
and  Tr.  Co’s.,  Loan  and  Banking  Co’s,  and 
other  similar  corporations  receiving  savings 
deposits  or  transacting  the  business  of  a 
Sav.  Bk.  shall  conduct  the  business  as  a . 
separate  dept.,  and  that  dept,  shall  be  amen- 
able to  the  laws  governing  Sav.  Bks. 

Laws  of  1895,  Ch.  105,  Sec.  12.  No  Tr. 
Co.  shall  loan  to  any  person,  firm  or  its  in- 
dividual members  an  amount  in  excess  of 
10%  of  its  deposits  or  capital  stock,  nor  pur- 
chase or  hold,  both  by  way  of  investment  and 
security  for  loans,  the  stock  and  bonds  of 
any  corporation  to  an  amount  in  excess  of 
said  10%. 

Laws  of  1895,  Ch.  105,  Sec.  9.  The  capi- 
tal stock  of  a State  Bk.  or  Tr.  Co.,  and  the 
guaranty  fund  of  a Guaranty  Sav.  Bk.,  shall 
not  be  accepted  by  such  institution  as 

collateral. 


Savings  Banks. 


NEW  JERSEY 


Municipal  Law  in  red . Street  Railway  Law  in 

Railroad  Law  in  green.  brown . 

Other  matter  in  black. 

NEW  JERSEY 

SAVINGS  BANKS. 

CHAPTER  195 

Corrected  to  and  Including  1913  Session 

33.  No  Sav.  Bk.  shall  invest  the  moneys 
deposited  with  the  same  in  any  manner, 
except  as  follows,  to  wit: 

1.  In  stocks  or  bonds  or  interest-bearing 
notes  or  obligations  of  the  U.  S.,  or  those 
for  which  the  faith  of  the  U.  S.  is  dis- 
tinctly pledged  to  provide  for  the  payment 
of  the  principal  and  interest  thereof; 

2.  In  the  interest-bearing  bonds  of  this 
State;  or  in  any  bonds  authorized  by  the 
laws  of  this  State  to  be  issued  by  any  com- 
mission appointed  by  the  Supreme  Court  of 
this  State,  by  virtue  of  any  law  of  this 
State ; 

3.  In  the  bonds  of  any  State  in  the  Union 
that  has  not,  within  10  yrs.  previous  to 
making  such  investment  by  any  such  Bk., 
defaulted  in  the  payment  of  any  part  of 
either  principal  or  interest  in  any  debt  au- 
thorized by  any  law  of  such  State  to  be 
contracted ; 

4.  In  the  bonds  of  any  county,  town- 
ship, municipality  or  Sch.  Dist.  of  this  State 
issued  pursuant  to  the  authority  of  any  law 
of.  this  State ; provided  such  county,  town- 
ship, municipality  or  Sch.  Dist.  shall  not, 
within  the  5 yrs.  next  preceding,  have  de- 
faulted in  the  payment  of  any  part  of  either 
principal  or  interest  of  any  legal  debt  or 
obligation  thereof;  and  provided  further, 
the  total  debt  of  any  borough  or  village 
does  not  exceed  10%  of  its  assessed  valua- 
tion, and  such  Sch.  Dist.  bonds  are  by  law 
charged  upon  all  the  property  of  the  in- 
habitants of  such  Dist. ; or  in  any  interest- 
bearing  obligation  issued  by  the  county  in 
which  such  Bk.  is  situated  or  by  any  city, 
town,  township,  borough  or  village  in  such 
county ; 


i 


NEW  JERSEY. 


Savings  Banks. 


5.  In  the  bonds  of  any  city  or  county  of 
any  other  State  of  the  Union  issued  pur- 
suant to  the  authority  of  any  law  of  any 
such  State ; provided , no  such  city  or  county 
has,  within  10  yrs.  previous  to  making  such 
investment,  defaulted  in  the  payment  of  any 
part  of  either  principal  or  interest  of  any 
debt  authorized  by  law  of  such  State  to  be 
contracted;  and  provided  further , the  total 
debt  of  any  such  city  or  county  is  limited 
by  law  to  10%  of  its  assessed  valuation. 

6.  In  1st  Mtg.  bonds  issued,  guaranteed 
or  assumed  by  any  R.  R.  Co.,  which  has  paid 
dividends  of  not  less  than  4%  per  annum 
regularly  on  its  entire  capital  stock  for  a 
period  of  not  less  than  5 yrs.  next  pre- 
vious to  the  purchase  of  such  bonds,  or 
in  any  Con.  Mtg.  bonds  issued,  guaranteed 
or  assumed  by  any  such  Co.,  authorized  to 
be  issued  to  retire  the  entire  bonded  debt  of 
such  Co. ; or  in  the  bonds  of  any  Rwy.  Ter- 
minal or  Dock  Co.  of  this  State,  secured  by 
rst  Mtg.  on  terminal  or  dock  property 
fronting  on  the  Hudson  river  and  having 
an  assessed  value  for  the  purpose  of  taxa- 
tion in  excess  of  the  amount  of  the  entire 
issue  of  bonds,  and  used  and  occupied 
as  a dock  or  terminal  by  any  R.  R.  Co.  now 
operating  in  this  State; 

7.  In  bonds  secured  by  Mtgs.  which  shall 
be  a 1st  lien  on  real  estate  situate  in  this 
State,  and  worth  at  least  double  the  amount 
loaned  thereon,  but  not  to  exceed  80%  of 
the  whole  deposits  shall  be  so  loaned  or  in- 
vested ; but  in  case  the  loan  is  on  unimproved 
or  unproductive  real  estate,  the  amount 
loaned  thereon  shall  not  be  more  than  30% 
of  its  actual  value;  and  no  investment  in 
any  bond  and  Mtg.  shall  be  made  by  any 
Sav.  Bk.,  except  upon  the  report  of  a com- 
mittee of  at  least  3 of  the  managers,  and  2 
members  of  which  committee  shall  certify 
in  writing  to  the  value  of  the  premises 
mortgaged,  or  to  be  mortgaged,  according 
to  their  best  judgment;  such  report  shall  be 
filed  and  preserved  among  the  records  of 
the  Bk. ; 


2 


Savings  Banks. 


NEW  JERSEY 


8.  In  real  estate  strictly  in  accordance 
with  the  following  provisions: 

(a)  A plot  whereon  is  erected,  or  may  be 
erected,  a building  or  buildings  requisite  for 
the  convenient  transaction  of  its  business, 
and  from  portions  of  which  not  required 
for  its  own  use,  a revenue  may  be  derived ; 
the  cost  of  such  building  or  buildings  and 
lot  shall  in  no  case  exceed  50%  of  the  net 
surplus  of  such  Bk.  except  with  the  written 
approval  of  the  Com.  of  Bkg.  and  Ins. ; pro- 
vided, the  limitations  as  to  the  cost  of  such 
lot  and  building  contained  in  this  subdivi- 
sion shall  not  apply  to  or  affect  any  such 
investment  heretofore  made  by  a Sav.  Bk. 
organized  under  a special  charter; 

( b ) Such  as  shall  have  been  purchased 
or  acquired  by  it  at  sales  upon  the  fore- 
closure of  Mtgs.  owned  by  such  Corp.,  or 
upon  judgments  or  decrees  obtained  or  ren- 
dered for  debts  due  to  it,  or  in  settlements 
effected  to  secure  such  debts  or  in  satisfac- 
tion of  such  Mtgs.;  and  ah  such  real  estate 
shall  be  sold  by  such  Bk.  within  5 yrs.  after 
the  same  shall  have  been  so  purchased,  un- 
less, upon  application  by  such  Corp.  to  the 
Com.  of  Bkg.  and  Ins.,  he  shall  extend  the 
time  withm  which  such  sale  shall  be  made ; 
the  provisions  of  this  Sec.  shall  apply  to  all 
funds  of  any  Sav.  Bk.,  including  its  reserve 
fund,  and  all  investments  of  money  and 
sales  and  transfers  of  securities  may  be 
made  in  the  manner  provided  and  made 
lawful  in  this  act,  notwithstanding  any  pro- 
vision in  any  special  charter  contained  limit- 
ing the  number  of  trustees  or  managers  who 
shall  act  in  the  investment  of  moneys  and 
the  sale  or  transfer  of  stocks  or  securities. 

34.  No  Sav.  Bk.  shall  loan  the  money  on 
deposit  with  the  same,  or  any  part  thereof, 
upon  notes,  bills  of  exchange  or  drafts,  ex- 
cept upon  the  additional  pledge  of  collateral 
security,  which  shall  be  of  the  same  nature 
and  character  as  those  in  which  the  money 
deposited  may  be  invested  as  directed  in 
the  preceding  Sec.,  or  the  capital  stocks  of 
Nat.  and  State  Bks.  or  the  capital  stock  or 
bonds  of  other  Corps,  of  this  State,  which 

3 


NEW  JERSEY. 


Savings  Banks. 


have  not  defaulted  in  the  payment  of  inter- 
est or  dividends,  upon  the  collateral  loaned 
upon,  within  2 yrs.  next  preceding  the  time 
of  such  loan,  and  then  only  to  the  extent  of 
80%  of  the  market  value  of  such  collater- 
als; provided , the  total  amount  of  such 
loans  shall  not  exceed  15%  of  the  total  de- 
posits held  by  such  Sav.  Bk. 

36.  The  managers  of  every  Sav.  Bk.,  as 
soon  as  practicable,  shall  invest  the  moneys 
deposited  with  them  in  the  securities  named 
in  the  33d  Sec.,  except  that  for  the  purpose 
of  meeting  current  payments  and  expenses 
in  excess  of  the  receipts  there  may  be  kept 
an  available  fund  of  not  exceeding  10%  of 
the  whole  amount  of  deposits  with  such 
Bk. ; and  the  same  may  be  kept  on  hand  or 
on  deposit  in  any  solvent  Bk.  in  this  State, 
organized  under  the  law  of  this  State  or 
of  the  U.  S. ; or  the  same  may  be  deposited 
on  call,  at  interest,  in  such  solvent  Tr.  Co. 
incorporated  under  the  laws  of  this  State 
or  of  the  States  of  N.  Y.  or  Penn.,  or  in 
such  solvent  Nat.  Bk.  located  in  the  State 
of  N.  Y.  or  in  the  State  of  Penn.,  as  a 
majority  of  the  managers  of  such  Bk.  may 
direct,  by  resolution  adopted  at  a regular 
or  special  meeting,  and  duly  recorded  on 
their  minutes;  or  such  available  fund,  or 
any  part  thereof,  may  be  loaned  upon 
pledge  oi  the  securities,  or  any  of  them, 
named  in  Sec.  33  of  this  act,  but  not  in  ex- 
cess of  80%  of  the  market  value  of  such 
securities  so  pledged;  and  should  any  of 
the  securities  so  held  in  pledge  depreciate 
in  value  after  making  any  loan  thereon, 
the  managers  shall  require  the  immediate 
payment  of  such  loan,  or  a part  thereof, 
or  additional  security  therefor,  so  that  the 
amount  loaned  shall  at  no  time  exceed  80% 
of  the  cash  market  value  of  the  securities 
pledged  for  the  same. 

37.  Any  Sav.  Bk.  may  deposit  tempo- 
rarily in  Bks.,  as  provided  in  the  preceding 
Sec.,  the  excess  of  current  daily  receipts 
over  the  payments  until  such  time  as  the 
same  can  be  judiciously  invested  in  the 
securities  named  in  Sec.  33;  and  whenever 

4 


Savings  Banks. 


NEW 


it  shall  appear  to  the  Com.  of  Bkg.  and  Ins. 
that  the  managers  of  any  such  Sav.  Bk. 
are  violating  the  spirit  and  intent  of  the 
provisions  of  this  and  the  preceding  Sec., 
by  keeping  permanently  uninvested  all,  or 
any  undue  proportion,  of  the  moneys  re- 
ceived by  them,  he  shall  report  the  facts  to 
the  Attorney-General,  who  shall  proceed 
against  such  Bk.,  under  the  provision  of 
Sec.  52  of  this  act. 

38.  In  all  cases  of  loans  upon  real  es- 
tate, a sufficient  bond,  secured  by  a Mtg.  on 
said  real  estate,  shall  be  required  of  the 
borrower  ; and  all  the  expenses  of  searches, 
examinations  and  certificates  of  title  or  ap- 
praisals of  value,  and  of  drawing,  perfect- 
ing and  recording  papers  shall  be  paid  by 
the  borrower. 

39.  When  any  building  or  buildings  are 
included  in  the  valuation  of  any  real  estate, 
upon  which  loan  shall  be  made,  the  same 
shall  be  insured  by  the  mortgagor  in  such 
Co.  or  Cos.  as  the  managers  shall  approve, 
and  the  policy  or  policies  of  Ins.  shall  be 
duly  assigned,  or  the  loss  made  payable,  as 
interest  may  appear,  to  such  Bk. ; and  such 
Sav.  Bk.  may  renew  such  policy  or  policies 
of  Ins.  in  the  same,  or  in  any  other  Co.  or 
Cos.,  as  it  may  elect,  from  year  to  year,  or 
for  a longer  or  shorter  term,  in  case  the 
mortgagor  shall  neglect  to  do  so,  and  charge 
the  amount  paid  to  the  mortgagor;  and  all 
necessary  charges  and  expenses  for  such 
renewal  or  renewals  shall  be  paid  by  such 
mortgagor  to  such  Sav.  Bk.,  and  shall  be  a 
lien  upon  the  property  so  mortgaged,  re- 
coverable with  interest  from  time  of  pay- 
ment, as  part  of  the  moneys  secured  to  be 
paid  by  such  Mtg. 

Ch.  132.  Laws  of  1913.  Sec.  1.  Any  of- 
ficer, director,  employee,  agent  or  attorney 
or  any  Bk.,  Tr.  Co.,  Bid.  and  Loan  Asso. 
or  Sav.  Bk.  incorporated  under  the  laws 
of  this.  State  who  shall  in  anywise,  directly 
or  indirectly,  ask  for,  demand,  exact,  re- 
quire, receive  or  accept,  for  his  personal 
use,  benefit  or  advantage,  any  sum  of  money, 
or  any  property  or  other  thing,  or  any 

5 


NEW  JERSEY. 


Trust  Companies. 


credit,  or  any  promissory  note,  bill  of  ex- 
change, check  or  other  evidence  of  debt, 
or  any  security,  promise,  contract,  covenant, 
agreement  or  obligation,  express  or  implied, 
for  the  payment,  delivery,  alienation  or 
transfer  of  any  money,  property  or  other 
thing,  or  for  the  performance  or  render- 
ing of  any  act  or  service,  as  a bribe,  pres- 
ent, reward,  inducement,  commission  or 
fee  for  loaning  any  funds  of  or  giving  any 
credit  on  behalf  of  such  Bk.,  Tr.  Co.,  Bid. 
and  Loan  Asso.  or  Sav.  Bk.,  or  for  rec- 
ommending, approving,  voting  for  or  con- 
senting to  the  making  of  any  loan  or  the 
giving  of  any  credit  by  such  Bk.,  Tr.  Co., 
Bid.  and  Loan  Asso.  or  Sav.  Bk.,  shall  be 
guilty  of  a misdemeanor  and  punished  by 
a fine  not  exceeding  $1,000,  or  by  impris- 
onment, with  or  without  hard  labor  as  the 
court  may  direct,  for  any  term  not  exceed- 
ing 3 years,  or  both. 

TRUST  COMPANIES. 

CHAPTER  174 

Sec.  6.  Powers  (3)  ...  to  loan  money 
on  real  and  personal  securities. 

(4)  To  lease,  hold,  purchase  and  convey 
any  and  all  real  property  necessary  for  or 
convenient  in  the  transaction  of  its  busi- 
ness, or  which  the  purposes  of  the  Corp. 
may  require,  or  which  it  shall  acquire  in 
satisfaction  or  partial  satisfaction  of  debts 
due  the  Corp.  under  sales,  judgments  or 
Mtgs.,  or  in  settlement  or  partial  settlement 
of  debts  due  the  Corp.  by  any  of  its  debtors. 

(10)  To  purchase,  invest  in,  and  sell 
stocks,  promissory  notes,  bills  of  exchange, 
bonds  and  Mtgs.  and  other  securities;  and 
when  moneys  or  securities  for  moneys  are 
borrowed  or  received  on  deposit,  or  for 
investment,  the  bonds  or  obligations  of  the 
Co.  may  be  given  therefor,  but  it  shall  have 
no  right  to  issue  bills  to  circulate  as  money. 

Sec.  7.  No  Corp.  created  under  this  act 
shall  have  power  to  discount  commercial 
paper;  no  Tr.  Co.  shall  have  power  to 
make  loans  upon  bills,  notes  or  other  evi- 
6 


Trust  Companies. 


NEW  JERSEY 


dences  of  debt  except  to  a county,  city, 
town,  township,  borough  or  municipality  of 
this  State,  unless  the  same  shall  be  secured 
by  Mtg.  upon  lands  or  by  other  securities, 
the  actual  market  value  of  which  other  se- 
I curities  shall  at  all  times  exceed  by  at  least 
10%  the  amount  loaned  upon  the  same ; ex- 
cept under  and  subject  to  the  provisions  of 
this  act,  ...  no  money,  property  or  secu- 
rities received  or  held  by  any  Tr.  Co.  in  its 
capacity  of  assignee,  receiver,  executor,  ad- 
ministrator, guardian  or  trustee  shall  be 
mingled  with  investments  of  the  capital 
stock  or  other  moneys  or  property  belong- 
ing to  or  deposited  with  such  Corp.  . . . 
All  other  moneys  and  funds  belonging  to 
or  deposited  with  such  Tr.  Co.  may  be  used 
and  invested  in  accordance  with  the  pro- 
visions of  this  act. 

Sec.  15.  No  Tr.  Co.  shall  make  any  loan 
to  its  president,  vice-president,  treasurer, 
secretary,  cashier  or  to  any  of  its  directors 
or  any  of  its  clerks,  tellers,  book-keepers, 
agents,  servants  or  other  persons  in  its  em- 
ploy until  the  proposition  to  make  such 
loan,  stating  the  amount,  terms  and  secu- 
rity, if  any,  offered  therefor,  shall  have  been 
submitted  in  writing  by  the  person  desiring 
the  same  to  a meeting  of  the  board  of  direc- 
tors of  such  Co.,  or  of  the  executive  com- 
mittee of  such  board,  if  any,  and  accepted 
and  approved  by  the  vote  of  a majority  of 
those  present  constituting  a quorum;  . . . 

Sec.  18.  No  Tr.  Co.  shall  make  any  loan 
on  the  security  of  the  shares  of  its  own  cap- 
ital stock,  nor  be  the  purchaser  or  holder 
of  any  such  shares  unless  such  security  or 
purchase  shall  be  necessary  to  prevent  loss 
upon  a debt  previously  contracted  in  good 
faith;  and  stock  so  purchased  or  acquired 
* shall  within  1 yr.  from  the  time  of  its  pur- 

r chase  be  sold  or  disposed  of  at  public  or 

private  sale;  provided,  that  nothing  in  this 
Sec.  contained  shall  apply  to  any  loan  made 
before  passage  of  this  act. 

Bonds  issued  by  Commissions  appointed 
by  Supreme  Court. 

See  2 last  Secs,  under  Savings  Banks. 


JERSEY. 


Savings  Banks. 


STATE  BANKS  (BANKS  OF  DISCOUNT  AND 
DEPOSIT.) 

CHAPTER  173 

Sec.  6.  In  addition  to  the  general  powers 
conferred  by  the  “Act  concerning  corpora- 
tions’* (Revision  of  1896),  so  far  as  the 
same  are  not  inconsistent  with  this  act, 
every  Bk.  shall  have  power  ...  to  carry  on 
the  business  of  banking  by  discounting  bills, 
notes  and  other  evidences  of  debt,  ...  by 
buying  promissory  notes,  Mtgs.  and  other 
evidences  of  debt,  and  foreign  and  inland 
bills  of  exchange,  by  loaning  money  on  real 
and  personal  security,  . . . every  Bk.  may 
purchase,  hold  and  convey  real  estate  as 
follows : 

1.  Such  as  shall  be  necessary  for  the 
convenient  transaction  of  its  business,  in- 
cluding with  its  banking  office,  other  apart- 
ments to  rent  as  a source  of  income,  which 
investment  shall  not  exceed  25%  of  its  paid- 
in  capital  stock  and  permanent  surplus; 
provided , that  this  provision  shall  not  apply 
to  any  investment  made  before  the  date 
when  this  act  takes  effect; 

2.  Such  as  is  mortgaged  to  it  in  good 
faith  by  way  of  security  for  loans  made  by 
or  money  due  to  such  Bk. ; 

3.  Such  as  is  conveyed  to  it  in  satisfac- 
tion of  debts  previously  contracted  in  the 
course  of  its  dealings; 

4.  Such  as  it  acquires  by  sale  on  execu- 
tion or  judgment  or  decree  of  any  court  in 
its  favor;  the  Bk.  shall  not  purchase,  hold 
or  convey  real  estate  in  any  other  case  or 
for  any  other  purpose  whatever  ...  no 
real  estate  acquired  in  the  cases  contem- 
plated in  the  2d,  3d  and  4th  sub-secs,  above 
shall  be  held  for  a longer  time  than  5 yrs.,  , 
unless  such  period  shall  be  extended  by  the  V 
Com.  of  Bkg.  and  Ins.;  provided , that  this 
provision  shall  not  apply  to  real  estate  ac- 
quired before  the  date  when  this  act  takes 
effect. 

Sec.  12.  No  Bk.  shall  make  any  loan  to 
its  officers,  etc.  (see  Sec.  15  under  Trust 

8 


State  Banks. 


NEW  JERSEY. 


Companies,  the  substance  of  which  applies 
to  State  banks). 

Sec.  15.  Bk.  may  not  loan  on  or  pur- 
chase its  shares  (see  Sec.  18  under  Tr.  Cos., 
the  substance  of  which  applies  to  State 
banks). 

Sec.  18.  The  total  liabilities  to  any  Bk. 
of  any  person  or  of  any  Co.,  Corp.  or  firm 
for  money  borrowed,  including  in  the  lia- 
bilities of  a Co.  or  firm  the  liabilities  of  the 
several  members  thereof,  shall  at  no  time 
exceed  10%  of  the  aggregate  amount  of  the 
capital  stock  of  such  Bk.  actually  paid  in, 
and  of  the  permanent  surplus  fund  of  such 
Bk. ; provided,  that  the  total  liability  of  any 
officer  or  director  to  such  Bk.  shall  at  no 
time  exceed  10%  of  the  aggregate  amount  of 
the  capital  stock  of  such  Bk.  actually  paid  in, 
and  of  the  permanent  surplus  fund  of  such 
Bk. ; provided  further,  however,  that  the 
provisions  of  this  Sec.  shall  not  be  con- 
strued to  apply  to  loans  made  by  any  Bk. 
to  any  county,  city,  town,  township,  bor- 
ough or  municipality  of  this  State;  the  fol- 
lowing shall  not  be  considered  as  money 
borrowed  within  the  meaning  of  this  Sec., 
namely : 

1.  The  discount  of  business  or  commer- 
cial paper  made  by  other  parties  and  actu- 
ally owned  by  the  person  negotiating  the 
same; 

2.  The  discount  of  bills  of  exchange 
drawn  in  good  faith  against  actually  exist- 
ing values; 

3.  The  discount  of  paper  based  on  col- 
lateral security  other  than  promissory  notes, 
the  actual  market  value  of  which  shall  at 
all  times  exceed  by  at  least  10%  the  amount 
loaned  upon  the  same. 

Bonds  Issued  by  Commissions  Appointed 
by  Supreme  Court. 

See  2 last  Secs,  under  Savings  Banks. 


9 


i 


Savings  Banks. 


NEW  YORK. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


NEW  YORK. 
CHAPTER  io. 


An  act  constituting  Chap.  2 of  the  consoli- 
dated laws. 

As  amended  1912-13  Session. 

SAVINGS  BANKS. 

Sec.  142.  * * * No  trustee  or  officer  of  any 
such  Corp.  shall  directly  or  indirectly,  for  him- 
self or  as  an  agent  or  partner  of  others,  bor- 
row any  of  its  funds  or  deposits,  or  in  any 
manner  use  the  same  except  to  make  such 
current  and  necessary  payments  as  are  author- 
ized by  the  board  of  trustees;  nor  shall 
any  trustee  or  officer  of  any  such  Corp.  be- 
come an  indorser  or  surety,  or  become  in 
any  manner  an  obligor,  for  moneys  loaned  by 
or  borrowed  of  such  Corp. 

Sec.  146.  The  trustees  of  any  Sav.  Bk. 
may  invest  the  moneys  deposited  therein  and 
the  income  derived  therefrom  only  as  fol- 
lows : 

1.  In  the  stocks  or  bonds  or  interest-bear- 
ing notes  or  obligations  of  the  U.  S.,  or 
those  for  which  the  faith  of  the  U.  S.  is 
pledged  to  provide  for  the  payment  of  the 
interest  and  principal,  including  the  bonds 
of  the  District  of  Columbia. 

2.  In  the  stocks  or  bonds  or  interest-bear- 
ing obligations  of  this  state,  issued  pursuant 
to  the  authority  of  any  law  of  the  state. 

3.  In  the  stocks  or  bonds  or  interest-bear- 
ing obligations  of  any  state  of  the  U.  S. 
which  has  not  within  10  yrs.  previous  to 
making  such  investment  by  such  Corp.  de- 
faulted in  the  payment  of  any  part  of  either 
principal  or  interest  of  any  debt  authorized 
by  the  legislature  of  any  such  state  to  be 
contracted  ; and  in  the  bonds  or  interest-bear- 
ing obligations  of  any  state  of  the  U.  S., 
issued  in  pursuance  of  the  authority  of  the 
legislature  of  such  state,  which  have,  prior 
to  May  29th,  1895,  keen  issued  for  the  fund- 
ing or  settlement  of  any  previous  obligation 

1 


NEW  YORK. 


Savings  Banks. 


of  such  state  theretofore  in  default,  and  on 
which  said  funding  or  settlement  obligation 
there  has  been  no  default  in  the  payment 
of  either  principal  or  interest  since  the  is- 
suance of  such  funding  or  settlement  obli- 
gation, and  provided  the  interest  on  such 
funding  or  settlement  obligation  has  been 
paid  regularly  for  a period  of  not  less  than 
io  yrs.  next  preceding  such  investment;  and 
in  the  stocks,  bonds  or  interest-bearing  ob- 
ligations of  any  state  of  the  U.  S.,  issued  in 
pursuance  of  the  authority  of  the  constitution 
or  the  legislature  of  such  state,  to  refund  at  or 
before  maturity  or  within  90  days  after  ma- 
turity any  of  the  bonds  or  obligations  of  such 
state  which  at  their  maturity  or  at  the  date 
of  their  payment,  if  paid  before  maturity, 
were  legal  investments  for  Sav.  Bks.  under 
the  provisions  of  this  Subdiv.,  on  which  re- 
funding obligation  there  has  been  no  default 
in  the  payment  of  either  principal  or  interest 
since  the  issuance  thereof. 

4.  In  the  stocks  or  bonds  of  any  city, 
county,  town  or  village,  sch.  dist.  bonds  and 
union  free  sch.  dist.  bonds  issued  for 
school  purposes,  or  in  the  interest-bearing 
obligations  of  any  city,  county,  town  or 
village  of  this  state,  issued  pursuant  to  the 
authority  of  any  law  of  the  state  for  the 
payment  of  which  the  faith  and  credit  of 
the  municipality  issuing  them  are  pledged. 

5.  In  the  stocks  or  bonds  of  any  incor- 
porated city  situated  in  one  of  the  states  of 
the  U.  S.  which  was  admitted  to  state- 
hood prior  to  Jan.  1st,  1896,  and  which,  since 
Jan.  1st,  1861,  has  not  repudiated  or  de- 
faulted in  the  payment  of  any  part  of  the 
principal  or  interest  of  any  debt  author- 
ized by  the  legislature  of  any  such  state  to 
be  contracted,  provided  said  city  has  a popu- 
lation, as  shown  by  the  federal  census  next 
preceding  said  investment,  of  not  less  than 
45,000  inhabitants,  and  was  incorporated  as 
a city  at  least  25  yrs.  prior  to  the  making  of 
said  investment,  and  has  not,  since  Jan.  1st, 
1878,  defaulted  for  more  than  90  days  in  the 
payment  of  any  part  either  of  principal  or 
interest  of  any  bond,  note  or  other  evidence 

Mi  of  indebtedness,  or  effected  any  compromise 

■I  i 2 


Savings  Banks. 


NEW  YORK. 


of  any  kind  with  the  holders  thereof.  But 
if,  after  such  default  on  the  part  of  any 
such  state  or  city,  the  debt  or  security,  in 
the  payment  of  the  principal  or  interest  of 
which  such  default  occurred,  has  been  fully 
^ paid,  refunded  or  compromised  by  the  is- 
sue of  new  securities,  then  the  date  of  the 
first  failure  to  pay  principal  or  interest,  when 
due,  upon  such  debt  or  security,  shall  be 
taken  to  be  the  date  of  such  default,  within 
the  provisions  of  this  subdiv.,  and  subsequent 
failures  to  pay  instalments  of  principal  or 
interest  upon  such  debt  or  security,  prior  to 
the  refunding  or  final  payment  of  the  same, 
shall  not  be  held  to  continue  said  default  or 
to  fix  the  time  thereof,  within  the  meaning 
of  this  subdiv.,  at  a date  later  than  the  date 
of  said  first  failure  in  payment.  If  at  any 
time  the  debt  of  any  such  city,  together  with 
the  debt  of  any  Dist.  or  other  municipal 
Corp.  or  subdiv.  except  a county,  which  is 
wholly  or  in  part  included  within  the  bounds 
or  limits  of  said  city,  less  its  water  debt  and 
sinking  funds  shall  exceed  7%  of  the  valua- 
tion of  said  city  for  purposes  of  taxation, 
its  bonds  and  stocks  shall  thereafter,  and 
until  such,  debt  shall  be  reduced  to  7%.  of 
the  valuation  for  the  purposes  of  taxation, 
cease  to  be  an  authorized  investment  for  the 
moneys  of  Sav.  Bks.,  but  the  Supt.  of  Bks. 
may,  in  his  discretion,  require  any  Sav.  Bk. 
to  sell  such  bonds  or  stock  of  said  city  as 
may  have  been  purchased  prior  to  said  in- 
crease of  debt. 

6.  In  bonds  and  Mtgs.  on  unincumbered 
real  property  situated  in  this  state,  to  the 
extent  of  60%  of  the  value  thereof.  Not 
more . than  65%  of  the  whole  amount  of 
deposits  shall  be  so  loaned  or  invested.  If 
the  loan  is  on  unimproved  and  unproduc- 
tive  real  property,  the  amount  loaned  thereon 
p shall  not  be  more  than  40%  of  its  actual 
value.  No  investment  in  any  bonds  and  Mtgs. 
shall  be  made  by  any  Sav.  Bk.  except  upon 
the  report  of  a committee  of  its  trustees 
charged  with  the  duty  of  investigating  the 
same,  who  shall  certify  to  the  value  of  the 
premises  mortgaged  or  to  be  mortgaged, 
according  to  their  best  judgment,  * * * Also 
in  the  following  securities : 

3 


NEW  YORK. 


Savings  Banks. 


(a)  The  1st  Mtg.  bonds  of  any  R.  R.  Corp. 
of  this  state,  the  principal  part  of  whose 
R.  R.  is  located  within  this  state,  or  of  any 
R.  R.  Corp.  of  this  or  any  other  state  or 
states  connecting  with  and  controlled  and 
operated  as  a part  of  the  system  of  any 
such  R,  R.  Corp.  of  this  state,  and  of  which 
connecting  R.  R.  at  least  a majority  of  its 
capital  stock  is  owned  by  such  a R.  R.  Corp. 
of  this  state,  or  in  the  Mtg.  bonds  of  any 
such  R.  R.  Corp.  of  an  issue  to  retire  all 
prior  Mtg.  debt  of  such  R.  R.  Cos.  respectively ; 
Provided  that  at  no  time  within  5 yrs.  next 
preceding  the  date  of  any  such  investment, 
such  R.  R.  Corp.  of  this  state  or  such  con- 
necting R.  R.  Corp.  respectively  shall  have 
failed  regularly  and  punctually  to  pay  the 
matured  principal  and  interest  of  all  its 
Mtg.  debt,  and  in  addition  thereto  regularly 
and  punctually  to  have  paid  in  dividends  to 
its  stockholders  during  each  of  said  5 yrs. 
an  amount  at  least  equal  to  4%  upon  all  its 
outstanding  capital  stock;  and  Provided, 
further,  that  at  the  date  of  every  such  divi- 
dend the  outstanding  capital  stock  of  such 
R.  R.  Corp.,  or  such  connecting  R.  R.  Co. 
respectively,  shall  have  been  equal  to  at  least 
1 -3rd  of  the  total  Mtg.  debt  of  such  R.  R. 
Corps,  respectively,  including  all  bonds  is- 
sued or  to  be  issued  under  any  Mtg.  secur- 
ing any  bonds  in  which  such  investment  shall 
be  made. 

(b)  The  Mtg.  bonds  of  the  following  R.  R. 
Corps:  The  Chicago  & Northwestern  R.  R. 
Co.,  Chicago,  Burlington  & Quincy  R.  R. 
Co.,  Michigan  Central  R.  R.  Co.,  Illinois  Cen- 
tral R.  R.  Co.,  Pennsylvania  R.  R.  Co.,  Del- 
aware & Hudson  Co.,  Delaware,  Lackawanna 
& Western  R,  R.  Co.,  New  York,  New 
Haven  & Hartford  R.  R.  Co.,  Boston  & 
Maine  R.  R.  Co.,  Maine  Central  R.  R.  Co., 
the  Chicago  & Alton  R.  R.  Co.,  Morris  & 
Essex  R.  R.  Co.,  Central  R.  R.  of  N.  J., 
United  N.  J.  R.  R.  & Canal  Co.,  also  in  the 
Mtg.  bonds  of  R.  R.  Cos.  whose  lines  are 
leased  or  operated  or  controlled  by  any  R.  R. 
Co.  specified  in  this  paragraph  if  said  bonds 
be  guaranteed  both  as  to  principal  and  in- 


4 


Savings  Banks. 


NEW  YORK. 


tidrest  by  the  R.  R.  Co.  to  which  . said  lines 
are  leased  or  by  which  they  are  operated  or 
controlled.  Provided  that  at  the  time  of 
making  investments  authorized  by  this  para- 
graph the  said  R.  R.  Corps,  issuing  such  bonds 
shall  have  earned  and  paid  regular  dividends 
of  not  less  than  4%  per  annum  in  cash  on 
all  their  issues  of  capital  stock  for  the  10 
yrs.  next  preceding  such  investment,  and 
provided  the  capital  stock  of  any  said  R.  Rt 
Corps,  shall  equal  or  exceed  in  amount  i-3rd 
of  the  par  value  of  all  its  bonded  debt ; and 
further  provided  that  all  bonds  authorized 
for  investment  by  this  paragraph  shall  be  se- 
cured by  a Mtg.  which  is  a 1st  Mtg.  on  either 
the  whole  or  some  part  of  the  R.  R.  and 
R.  R.  property  of  the  Co.  issuing  such  bonds, 
or  that  such  bonds  shall  be  Mtg.  bonds  of 
an  issue  to  retire  all  prior  Mtg.  debts  of 
such  R.  R.  Co. ; Provided,  further,  that  the 
Mtg.  which  secures  the  bonds  authorized  by 
this  paragraph  is  dated,  executed  and  re- 
corded prior  to  Jan.  1st,  1905. 

(c)  The  Mtg.  bonds  of  the  Chicago,  Mil- 
waukee & St.  Paul  Rwy.  Co.,  and  the  Chi- 
cago, Rock  Island  & Pacific  Rwy.  Co.,  so  long 
as  they  shall  continue  to  earn  and  pay  at 
least  4%  dividends  per  annum  on  their  out- 
standing capital  stock,  and  Provided  their 
capital  stock  shall  equal  or  exceed  in  amount 
1 -3rd  of  the  par  value  of  all  their  bonded 
debt,  and  further  provided  that  all  bonds  of 
either  of  said  Cos.  hereby  authorized  for  in- 
vestment shall  be  secured  by  a Mtg.  which  is 
a-  1st  Mtg.  on  either  the  whole  dr  some  part 
of  the  R.  R.  or  R.  R,  property  actually  in 
the  possession  of  and  operated  by  said  Co.* 
or  that  such  bonds  shall  be  Mtg.  bonds  of 
an  issue  to  retire  all  prior  debts  of  said 
R.  R.  Co.;  Provided,  furtpier,  that  the  Mtg. 
which  secures  the  bonds  authorized  by  this 
paragraph  is  dated,  executed  and  recorded 
prior  to  Jan.  1st,  1905. 

(d)  The  1st  Mtg.  bonds  of  the  Fonda, 
Johnstown  & Gloversville  R.  R.  Co.,  or  in 
the^  Mtg.  bonds  of  said  R,  R.  Co.  of  an.  issue 


5 


NEW  YORK, 


Savings  Banks. 


to  retire  all  prior  Mtg.  debts  of  said  R.  R. 
Co.,  and  provided  the  capital  stock  of  said 
R.  R.  Co.  shall  equal  or  exceed  in  amount 
i*3d  of  the  par  value  of  all  its  bonded  debt 
and  Provided  also  that  such  R.  R.  be  of 
standard  gauge  of  4 ft.  8 y2  in.,  and  in  the 
Mtg.  bonds  of  the  Buffalo  Creek  R.  R.  Co. 
of  an  issue  to  retire  all  prior  Mtg.  debts  of 
said  R.  R.  Co.,  Provided  that  the  bonds 
authorized  by  this  paragraph  are  secured  by 
a Mtg.  dated,  executed  and  recorded  prior 
to  Jan.  1st,  1905. 

(e)  The  Mtg.  bonds  of  any  R.  R.  Corp. 
incorporated  under  the  laws  of  any  of  the 
U.  S.,  which  actually  owns  in  fee  not  less 
than  500  miles  of  standard  gauge  Rwy.  ex- 
clusive of  sidings,  within  the  U.  S.,  Pro- 
vided that  at  no  time  within  5 yrs.  next  pre- 
ceding the  date  of  any  such  investment  such 
R.  R.  Corp.  shall  have  failed  regularly  and 
punctually  to  pay  the  matured  principal  and  in- 
terest of  all  its  Mtg.  debt  and  in  addition  thereto 
regularly  and  punctually  to  have  paid  in  divi- 
dends to  its  stockholders  during  each  of 
said  5 yrs.  an  amount  at  least  equal  to  4% 
upon  all  its  outstanding  capital  stock ; and 
Provided  further  that  during  said  5 yrs.  the 
gross  earnings  in  each  yr.  from  the  opera- 
tions of  said  Co.,  including  therein  the  gross 
earnings  of  all  R.  Rs.  leased  and  operated  or 
controlled  and  operated  by  said  Co.,  and  also 
including  in  said  earnings  the  amount  re- 
ceived directly  or  indirectly  by  said  Co.  from 
the  sale  of  coal  from  mines  owned  or  con- 
trolled by  it,  shall  not  have  been  less  in 
amount  than  5 times  the  amount  necessary 
to  pay  the  interest  payable  during  that  yr. 
upon  its  entire  outstanding  debt,  and  the 
rentals  for  said  yr.  of  all  leased  lines,  and 
further  provided  that  all  bonds  authorized 
for  investment  by  this  paragraph  shall  be 
secured  by  a Mtg.  which  is  at  the  time  of 
making  said  investment  or  .-  was  at  the  date 
of  the  execution  of  said  Mtg.  (1)  a 1st  Mtg. 
upon  not  less  than  75%  of  the  Rwy.  owned 
in  fee  by  the  Co.  issuing  said  bonds  exclu- 


0 


Savings  Banks. 


NEW  YORK. 


I 


sive  of  sidings  at  the  date  of  said  Mtg.  or 
(2)  a Refd.  Mtg.  issued  to  retire  all  prior 
lien  Mtg.  debts  of  said  Co.  outstanding  at  the 
time  of  said  investment  and  covering  at 
least  75%  of  the  Rwy.  owned  in  fee  by  said 
Co.  at  the  date  of  said  Mtg.  But  no  one 
of  the  bonds  so  secured  shall  be  a legal  in- 
vestment in  case  the  Mtg.  securing  the  same 
shall  authorize  a total  issue  of  bonds  which 
together  with  all  outstanding  prior  debts  of 
said  Co.,  after  deducting  therefrom  in  case 
of  a Refd.  Mtg.,  the  bonds  reserved  under  the 
provisions  of  said  Mtg.  to  retire  prior 
debts  at  maturity,  shall  exceed  3 times  the 
outstanding  capital  stock  of  said  Co.  at  the 
time  of  making  said  investment.  And  no 
Mtg.  is  to  be  regarded  as  a Refd.  Mtg.,  under 
the  provisions  of  this  paragraph,  unless  the 
bonds  which  it  secures  mature  at  a later  date 
than  any  bond  which  it  is  given  to  refund, 
nor  unless  it  covers  a mileage  at  least  25% 
greater  than  is  covered  by  any  one  of  the 
prior  Mtgs.  so  to  be  refunded. 

(f)  Any  Rwy.  Mtg.  bonds  which  would 
be  a legal  investment  under  the  provisions 
of  paragraph  (e)  of  this  subdiv.,  except  for 
the  fact  that  the  R.  R.  Corp.  issuing  said 
bonds  actually  owns  in  fee  less  than  500  miles 
of  road,  Provided  that  during  5 yrs.  next 
preceding  the  date  of  any  such  investment 
the  gross  earnings  in.  each  yr.  from  the  opera- 
tions of  said  Corp.,  including  the  gross  earn- 
ings of  all  lines  leased  and  operated  or  con- 
trolled and  operated  by  it,  shall  not  have 
been  less  than  $10,000,000. 

(g)  The  Mtg.  bonds  of  a R,  R.  Corp. 
described  in  the  foregoing  paragraph  (e)  or 
(f)  or  the  Mtg.  bonds  of  a R.  R.  owned 
by  such  Corp.,  assumed  or  guaranteed  by  it 
by  indorsement  on  said  bonds,  provided  said 
bonds  are  prior  to  and  are  to  be  refunded 
by  a-  general  Mtg.  of  said  Corp.  the  bonds 
secured  by  which  are  made  a legal  invest- 
ment under  the  provisions  of  said  paragraph 
(e)  or  (f)  ; and  Provided,  further,  that 
said  general  Mtg.  covers  all  the  real  property 


7 


NEW  YORK. 


Savings  Banks. 


upon  which  the  Mtg.  securing  said  underly- 
ing bonds  is  a lien. 

(h)  Any  Rwy.  Mtg.  bonds  which  would  be 
a legal  investment  under  the  provisions  of 
paragraph  (e)  or  (g)  of  this  subdiv.,  except 
for  the  fact  that  the  R.  R.  Corp.  issuing  said 
bonds  actually  owns  in  fee  less  than  500 
miles  of  road,  Provided  the  payment  of  prin- 
cipal and  interest  of  said  bonds  is  guaranteed 
by  indorsement  thereon  by,  or  Provided  said 
bonds  have  been  assumed  by,  a Corp.  whose 
ist  Mtg.  is,  or  Refd.  Mtg.  bonds  are,  a legal 
investment  under  the  provisions  of  paragraph 

(e)  or  (f)  of  this  subdiv.  But  no  one  of 
the  bonds  so  guaranteed  or  assumed  shall 
be  a legal  investment  in  case  the  Mtg.  secur- 
ing the  same  shall  authorize  a total  issue 
of  bonds  which,  together  with  all  the  out- 
standing prior  debts  of  the  Corp.  making  such 
guaranty  or  so  assuming  said  bonds,  includ- 
ing therein  the  authorized  amount  of  all 
previously  guaranteed  or  assumed  bond  issues, 
shall  exceed  3 times  the  capital  stock  of  said 
Corp.,  at  the  time  of  making  said  investment. 

(i)  The  ist  Mtg.  bonds  of  a R.  R.  the  en- 

tire capital  stock  of  which,  except  shares  nec- 
essary to  qualify  directors,  is  owned  by,  and 
which  is  operated  by  a R.  R.  whose  last  is- 
sued Refd.  bonds  are  a legal  investment  under 
the  provisions  of  paragraph  (a),  (e)  or 

(f)  of  this  subdiv.,  Provided  the  payment  of 
principal  and  interest  of  said  bonds  is  guar- 
anteed by  indorsement  thereon  by  the  Co.  so 
owning  and  operating  said  road,  and  further 
provided  the  Mtg.  securing  said  bonds  does 
not  authorize  an  issue  of  more  than  $20,000 
in  bonds  for  each  mile  of  road  covered 
thereby.  But  no  one  of  the  bonds  so  guaran- 
teed shall  be  a legal  investment  in  case  the 
Mtg.  securing  the  same  shall  authorize  a total 
issue  of.  bonds  which  together  with  all  the 
outstanding  prior  debts  of  the  Co.  making 
said  guaranty,  including  therein  the  author- 
ized amount  of  all  previously  guaranteed  bond 
issues,  shall  exceed  3 times  the  capital  stock 


8 


Savings  Banks. 


NEW  YORK. 


of  said  Co.,  at  the  time  of  making  said 
investment. 

Bonds  which  have  been  or  shall  become  legal 
investments  for  Sav.  Bks.  under  any  of  the 
provisions  of  this  Sec.  shall  not  be  rendered 
illegal  as  investments,  though  the  property 
upon  which  they  are  secured  has  been  or  shall 
be  conveyed  to  another  Corp.,  and  though  the 
R.  R.  Corp.  which  issued  or  assumed  said 
bond  has  been  or  shall  be  consolidated  with 
another  R.  R.  Corp.,  if  the  consolidated  or 
purchasing  Corp.  shall  assume  the  payment  of 
said  bonds  and  shall  continue  to  pay  regu- 
larly interest  or  dividend  or  both  upon  the 
securities  issued  against,  in  exchange  for  or 
to  acquire  the  stock  of  the  Co.  consolidated 
or  the  property  purchased,  or  upon  securities 
subsequently  issued  in  exchange  or  substitu- 
tion therefor,  to  an  amount  at  least  equal  to 
4%  per  annum  upon  the  capital  stock  out- 
standing at  the  time  of  such  consolidation  or 
purchase  of  said  Corp.  which  has  issued  or 
assumed  said  bonds. 

Not  more  than  25%  of  the  assets  of  any 
Sav.  Bk.  shall  be  loaned  or  invested  in  R.  R; 
bonds,  and  not  more  than  10%  of  the  assets 
of  any  Sav.  Bk.  shall  be  invested  in  the  bonds 
of  any  one  R.  R.  Corp.  described  in  para- 
graph (a)  of  this  subdiv.,  and  not  more  than 
5%  of  such  assets  in  the  bonds  of  any  other 
R.  R.  Corp.  In  determining  the  amount  of 
the  assets  of  any  Sav.  Bk.  under  the  provi- 
sions of  this  subdiv.  its  securities  shall  be 
estimated  in  the  manner  prescribed  for  deter- 
mining the  per  centum  of  surplus  by  Sec. 
154  of  this  Chap.  Street  R.  R.  Corps,  shall 
not  be  considered  R.  R.  Corps,  within  the 
meaning  of  this  subdiv. 

Sec.  147.  Every  such  Corp.  may  purchase, 
hold  or  convey  real  property  only  as  follows: 

1.  A plot  whereon  is  erected  or  may  be 
erected  a building  or  buildings  requisite  for 
the  convenient  transaction  of  its  business,  and 
from  portions  of  which  not  required  for  its 
own  use  a revenue  may  be  derived.  The  cost 
of  such  building  or  buildings  and  lot  shall  in 

9 


NEW  YORK. 


Savings  Banks. 


no  case  exceed  25%  of  the  net  surplus  of 
the  Corp.,  except  by  written  permission  of 
the  Supt.  of  Bks.  The  estimate  of  the  cost  of 
said  building  and  lot,  and  the  plans  of  the 
building  to  be  erected,  shall  first  be  submitted 
to  the  Supt.  of  Bks.  for  his  approval,  before 
the  purchase  of  the  lot  is  made  or  before  the 
erection  of  the  building  is  commenced. 

2.  Such  as  shall  have  been  purchased  by  it 
at  sales  upon  the  foreclosure  of  Mtgs.  owned 
by  it,  or  on  judgments  or  decrees  obtained  or 
rendered  for  debts  due  to  it,  or  in  settlements 
effected  to  secure  such  debts.  All  such  real 
property  shall  be  sold  by  such  Corp.  within 
5 yrs.  after  the  title  to  the  same  shall  be 
vested  in  it,  unless,  upon  application  by  the 
board  of  trustees,  the  Supt.  shall  extend  the 
time  within  which  such  sale  shall  be  made. 

Every  such  Corp.  may,  with  the  approval 
in  writing  and  under  the  seal  of  the  Supt. 
of  Bks.,  change  its  location  within  the  limits 
of  any  city  or  town  wherein  it  may  be  es- 
tablished. In  effecting  such  change  of  loca- 
tion such  Corp.  owning  a banking-house  and 
lot,  may  purchase  such  additional  plot  under 
the  provisions  of  subdiv.  1 of  this  Sec.  as 
I the  Corp.  may  require ; and  such  banking- 
house  and  lot  previously  owned  and  oc- 
cupied shall  be  sold  as  provided  in  this  sub- 
div. concerning  real  property  acquired  in 
satisfaction  of  debts. 

Sec.  148.  The  trustees  of  every  such  Corp. 
shall  as  soon  as  practicable  invest  the  moneys 
deposited  with  them  in  the  securities  author- 
ized by  this  Art.;  but  for  the  purpose  of  meet- 
ing current  payments  and  expenses  in  excess 
of  the  receipts,  there  may  be  kept  an  avail- 
able fund  not  exceeding  10%  of  the  whole 
amount  of  deposits  with  such  Corp.,  on  hand 
or  deposit  in  any  Bk.  in  this  state  organized 
; under  any  law  of  this  state  or  of  the  U.  S., 
or  with  any  Tr.  Co.  incorporated  by  any  law 
of  the  state;  but  the  sum  so  deposited  in  any 
one  Bk.  or  Tr.  Co.  shall  not  exceed  25%  of 
the  paid-up  capital  and  surplus  of  any  such 
Bk.  or  Co.;  or  such  available  fund,  or  any 


Savings  Banks. 


NEW  YORK. 


part  thereof,  may  be  loaned  upon  pledge  of 
the  securities  or  any  of  them  named  in 
subdivs.  i,  2,  3,  4 and  5 of  Sec.  146,  or  upon 
the  1st  Mtg.  bonds,  or  any  of  them,  of  the 
railroads  mentioned  and  described  in  subdiv. 
6 of  said  Sec.,  but  not  in  excess  of  90%  of 
the  cash  market  value  of  such  securities  so 
pledged.  Should  any  of  the  securities  so  held 
in  pledge  depreciate  in  value,  after  mak- 
ing any  loan  thereon,  the  trustees  shall  re- 
quire the  immediate  payment  of  such  loan  or 
of  a part  thereof,  or  additional  security  there- 
for, so  that  the  amount  loaned  shall  at  no 
time  exceed  90%  of  the  market  value  of  the 
securities  pledged  for  the  same. 

Sec.  149.  Every  such  Corp.  may  also  de- 
posit temporarily  in  the  Bks.  or  Tr.  Cos. 
specified  in  Sec.  148  the  excess  of  current 
daily  receipts  over  the  payments,  until  such 
time  as  the  same  can  be  judiciously  invested 
in  the  securities  required  by  this  Art.  * * * 

Sec.  150.  The  trustees  of  any  Sav.  Bk. 
shall  not  loan  the  moneys  deposited  with  them 
or^any  part  thereof,  upon  notes,  bills  of  ex- 
ch^fige,  drafts  or  any  other  personal  securi- 
ties whatever.  In  all  cases  of  loans  upon  real 
property,  a sufficient  bond  secured  by  a Mtg. 
thereon  shall  be  required  of  the  borrower, 
and  all  expenses  of  searches,  examinations 
and  certificates  of  title,  and  of  drawing,  per- 
fecting and  recording  papers,  shall  be  paid  by 
the  borrower. 

Sec.  151.  Whenever  buildings  are  included 
in  the  valuation  of  any  real  property  upon 
which  a loan  shall  be  made  by  any  such 
Corp.,  they  shall  be  insured  by  the  mortgagor 
in  such  Co.  or  Cos.  as  the  directors  shall  di- 
rect, and  the  policy  of  Ins.  shall  be  duly  as- 
signed, or  the  loss,  made  payable  as  its  in- 
terest may  appear,  to  such  Corp. ; and  any 
such  Corp.  may  renew  such  policy  of  Ins.  in 
the  same  or  any  other  Co.  or  Cos.  as  they 
may  elect,  from  year  to  year,  or  for  a longer 
or  shorter  term,  in  case  the  mortgagor  shall 
neglect  to  do  so,  and  may  charge  the  amount 
paid  to  the  mortgagor.  All  the  necessary 

11 


NEW  YORK. 


Trust  Companies. 


charges  and  expenses  paid  by  such  Corp.  for 
such  renewal  or  renewals  shall  be  paid  by  the 
mortgagor  to  the  Corp.,  and  shall  be  a lien 
upon  the  property  mortgaged,  recoverable  with 
interest  from  the  time  of  payment  as  part  of 
the  moneys  secured  to  be  paid  by  the  Mtg. 

Sec.  152.  No  Sav.  Bks.  shall  directly  or 
indirectly  deal  or  trade  in  real  property  in  any 
other  case  or  for  any  other  purpose  than  is 
authorized  by  this  Art.,  or  deal  or  trade  in 
any  goods,  wares,  merchandise  or  commodi- 
ties, whatever,  except  as  authorized  by  this 
article,  and  except  such  personal  property  as 
may  be  necessary  in  the  transaction  of  its 
business ; nor  shall  any  Sav.  Bk.  or  any  officer 
thereof  in  his  regular  attendance  upon  the 
business  of  the  Bk.,  in  any  manner  buy  or 
sell  exchange,  or  gold  or  silver,  or  collect  or 
protest  promissory  notes  or  time  bills  of  ex- 
change; but  Sav.  Bks.  may  sell  gold  or  silver 
received  in  payment  of  interest  or  principal 
of  obligations  owned  by  them,  or  from  deposi- 
tors in  the  regular  course  of  business.  * * * 

See  also  Sec.  44  under  Trust  Companies. 


TRUST  COMPANIES. 

Sec.  14.  Every  (Tr.  Co.)  * * * shall,  be- 
fore engaging  in  such  business,  transfer  and 
assign  to  the  Supt.  registered  public  stocks  or 
bonds  of  the  U.  S.  or  of  this  state,  or  of  any 
city,  county,  town,  village  or  free  sch.  dist. 
in  this  state,  authorized  by  the  legislature  to 
be  issued,  to  the  amount  in  value,  and  to  be 
at  all  times  so  maintained  by  the  Corp.,  of 
10%  on  its  paid-up  capital  stock,  but  not  less 
in  any  case  than  $100,000  in  cities  the  popu- 
lation of  which  exceeds  500,000  inhabitants, 
and  not  less  than  $50,000  in  cities  containing 
more  than  100,000  inhabitants  and  less  than 
500,000  inhabitants,  and  not  less  than  $30,000 
in  cities  containing  more  than  25,000  inhabi- 
tants and  less  than  100,000  inhabitants,  and 
not  less  than  $20,000  in  cities  or  towns  of  less 
than  25,000  inhabitants,  the  number  of  in- 


12 


Trust  Companies. 


NEW  YORK 


habitants  in  each  city  or  town  to  be  ascertained 
by  the  last  federal  census  or  state  enumera- 
tion. Such  stocks  must  be  registered  in  the 
name  of  the  Supt.  officially  as  held  in  trust 
under  and  pursuant  to  this  Chap.,  * * * 
Should  any  Corp.,  at  any  time,  have  deposited 
with  the  Supt.  more  than  the  amount  hereby 
required,  the  excess  may  be  refunded.  With 
the  approval  of  the  Supt.,  such  a deposit  may 
be  made  by  the  Corp.,  either  wholly  or  in 
part,  in  bonds  or  Mtgs.  satisfactory  to  the 
Supt.,  on  improved,  unincumbered  produc- 
tive real  property  in  this  state  worth  at  least 
75%  more  than  the  amount  loaned  thereon. 
* * * 

Sec.  15.  The  securities  deposited  by  any 
Corp.  pursuant  to  the  provisions  of  this 
Chap,  with  the  Supt.  of  Bks.  in  trust  for  any 
purpose,  may  be  exchanged  from  time  to  time 
for  other  securities  receivable  as  provided  in 
this  Chap. ; and  so  long  as  the  Corp.  so  de- 
positing shall  continue  solvent  and  comply 
with  the  laws  of  the  state,  it  may  be  permitted 
by  the  Supt.  to  collect  the  interest  or  divi- 
dends on  such  deposits,  and  from  time  to 
time  to  withdraw  any  of  such  securities  on 
depositing  with  the  Supt.  other  like  securi- 
ties, the  par  and  market  value  of  which  shall 
be  equal  to  the  par  and  market  value  of 
those  withdrawn. 

When  any  such  deposit  consists  of  bonds 
and  Mtgs.,  the  president  or  authorized  agent 
of  the  Corp.  depositing  the  same  shall  annex 
to  every  such  Mtg.  his  affidavit  that  the  Mtg. 
was  made  and  taken  in  good  faith  for  money 
loaned  by  the  Corp.  which  he  represents,  to 
the  amount  therein  named,  and  that  no  part 
thereof  has  been  since  paid  or  returned ; or 
if  any  part  has  been  paid,  the  amount  unpaid, 
and  that  he  has  reason  to  believe  and  does 
believe  that  the  premises  thereby  mortgaged 
are  worth  at  least  75%  more  than  the  amount 
of  the  Mtg.  thereon ; and  the  Supt.  shall  pre- 
scribe such  regulations  for  ascertaining  the 
title  and  value  of  the  real  property  mortgaged 
as  he  may  deem  necessary. 

13 


NEW  YORK. 


Trust  Companies. 


Sec.  27.  1.  No  Bk.  or  Tr.  Co.  shall  make 

any  loans  to  any  person,  Co.,  Corp.  or 
firm,  to  an  amount  exceeding  the  i-ioth  part 
of  its  capital  stock,  actually  paid  in,  and 
surplus ; Provided,  however,  that  a Bk.  or 
Tr.  Co.  having  its  principal  place  of  busi- 
ness in  a borough  in  any  city  of  the  state 
which  borough  had  according  to  the  last 
preceding  state  or  U.  S.  census  a population 
of  1,800,000  or  over  may  loan  to  any  person, 
Co.,  Corp.  or  firm,  a sum  not  exceeding  25% 
of  its  capital  stock  actually  paid  in  and  sur- 
plus and  a Bk.  or  Tr.  Co.  having  its  princi- 
pal place  of  business  elsewhere  in  the  state 
40%  of  its  capital  stock  actually  paid  in  and 
surplus  upon  security  worth  at  least  15% 
more  than  the  amount  of  the  loans ; or  it 
may  loan  10%  of  such  capital  and  surplus  as 
first  above  provided,  and  a Bk.  or  Tr.  Co. 
having  its  principal  place  of  business  in  a 
borough  in  any  city  in  the  state  which  borough 
had  according  to  the  last  preceding  state 
or  U.  S.  census  a population  of  1,800,000  or 
over  may  loan  a further  sum  not  exceeding 
15%  of  such  capital  and  surplus  and  a Bk. 
^ or  Tr.  Co.  having  its  principal  place  of  busi- 
ness elsewhere  in  the  state  may  loan  30%  of 
such  capital  and  surplus  upon  security  worth 
at  least  15%  more  than  the  amount  of  such 
loan  so  secured;  and  Provided  further,  that 
a Bk.  or  Tr.  Co.  may  buy  from,  or  dis- 
count for,  any  person,  Co.,  Corp.  or  firm,  or 
loan  upon,  bills  of  exchange  drawn  in  good 
faith  against  actually  existing  values,  or  com- 
mercial or  business  paper  actually  owned  by 
the  person  negotiating  the  same,  a sum  not 
exceeding  25%  of  its  capital  stock  actually 
paid  in  and  surplus  if  its  principal  place  of 
business  is  located  in  a borough  in  any  city 
in  the  state  which  borough  had,  according 
to  the  last  preceding  state  or  U.  S.  census 
a population  of  1,800,000  or  over  and  not  ex- 
ceeding 40%  of  its  capital  stock  actually  paid 
in  and  surplus  if  its  principal  place  of  busi- 
ness is  located  elsewhere  in  the  state;  Pro- 


Trust  Companies. 


NEW  YORK. 


vided  further,  however,  that  with  the  ex- 
ception of  the  liability  of  the  U.  S.,  of  this 
state,  or  of  any  county  or  incorporated  city 
of  this  state  the  total  liability  of  any  person, 
Co.  Corp.  or  firm  to  a Bk.  or  Tr.  Co.  shall 
not  exceed  25%  of  the  actually  paid  in  capi- 
tal stock  and  surplus  of  any  such  Bk.  or  Tr. 
Co.  having  its  principal  place  of  business  in 
a borough  in  any  city  in  the  state  which 
borough  had  according  to  the  last  preceding 
state  or  U.  S.  census  a population  of  1,800,- 
000  or  over  and  shall  not  exceed  40%  of  the 
actually  paid  in  capital  stock  and  surplus  of 
any  such  Bk.  or  Tr.  Co.  having  its  princi- 
pal place  of  business  elsewhere  in  the  state. 

2.  No  loan  shall  be  made  by  any  Bk.  or  Tr. 
Co.  upon  the  securities  of  one  or  more  Corps, 
the  payment  of  which  is  undertaken  in  whole 
or  in  part  severally,  but  not  jointly,  by  two 
or  more  individuals,  firms  or  Corps.: 

(a)  If  the  borrowers  or  underwriters  be 
obligated  absolutely  or  contingently  to  pur- 
chase the  securities  or  any  of  them  collateral 
to  such  loan,  unless  the  borrowers  or  under- 
writers shall  have  paid  on  account  of  the 
purchase  of  such  securities  an  amount  in  cash 
or  its  equivalent  equal  to  at  least  25%  of  the 
several  amounts  for  which  they  remain  ob- 
ligated in  completing  the  purchase  of  such 
securities ; 

(b)  if  the  Bk.  or  Tr.  Co.  making  such  loan 
be  liable  directly,  indirectly  or  contingently, 
for  the  repayment  of  such  loan  or  any  part 
thereof ; 

(c)  if  its  term  including  any  renewal 
thereof,  by  agreement,  express  or  implied, 
exceed  the  period  of  one  year. 

(d)  or  to  an  amount,  under  any  circum- 
stances, in  excess  of  25%  of  the  capital  and 
surplus  of  the  Bk.  or  Tr.  Co.  making  such 
loan. 

3.  No  Corp.  to  which  this  Chap,  is  appli- 
cable except  a Sav.  and  Loan  Asso.  shall 
hereafter  make  a loan,  directly  or  indirectly, 
upon  the  security  of  real  estate  upon  which 
there  is  a prior  Mtg.,  lien  or  incumbrance, 

15 


NEW  YORK. 


Trust  Companies. 


if  the  amount  unpaid  upon  such  prior  Mtg., 
lien  or  incumbrance,  or  the  aggregate  amount 
unpaid  upon  all  prior  Mtgs.,  liens  and  in- 
cumbrances exceeds  10%  of  the  capital  and 
surplus  of  such  Corp.,  or  if  the  amount  so 
secured,  including  all  prior  Mtgs.,  liens  and 
incumbrances  shall  exceed  2-3rds  of  the  ap- 
praised value  of  such  real  estate  as  found  by 
a committee  of  the  directors  or  trustees  of 
such  Corp. ; but  this  provision  shall  not  pre- 
vent the  acceptance  of  any  such  real  estate 
securities  to  secure  the  payment  of  a debt 
previously  contracted  in  good  faith.  Every 
Mtg.  and  every  assignment  of  a Mtg.  taken 
or  held  by  such  Corp.  shall  immediately  be 
recorded  in  the  office  of  the  clerk  of  the 
county  in  which  the  real  estate  described  in 
the  Mtg.  is  located.  * * * no  loan  shall  be 
made,  directly  or  indirectly,  upon  real  estate 
security  by  a Bk.  having  its  principal  place 
of  business  in  a borough  in  any  city  in  the 
state  which  borough  had  according  to  the 
last  preceding  state  or  U.  S.  census  a popu- 
lation of  1,800,000  or  over,  if  its  total  direct 
and  indirect  loans  upon  real  estate  security 
exceed,  or  by  the  making  of  such  loan  will 
exceed,  15%  in  the  aggregate  of  the  total 
assets  of  such  Bk.,  or  by  a Bk.  having  its 
principal  place  of  business  in  a village  of 
not  over  1500  inhabitants,  according  to  such 
census,  in  which  there  is  no  Sav.  Bk.,  if  its 
total  loans  upon  real  estate  security  exceed, 
or  by  the  making  of  such  loan  will  exceed, 
40%  in  the  aggregate  of  its  total  assets,  or 
by  a Bk.  having  its  principal  place  of  busi- 
ness elsewhere  in  the  state  if  its  total  direct 
and  indirect  loans  upon  real  estate  security 
exceed,  or  by  the  making  of  such  loan  will 
exceed  25%  in  the  aggregate  of  its  total  assets. 

4.  No  Corp.  to  which  this  Chap,  is  applic- 
able, except  a mortgage  loan  or  investment 
corporation,  nor  any  of  its  directors,  officers, 
agents  or  servants  shall,  directly  or  indirectly, 
purchase  or  be  interested  in  the  purchase  of 
any  promissory  note  or  other  evidence  of 
debt  issued  by  it  for  a less  sum  than  shall 


Trust  Companies. 


NEW  YORK. 


appear  on  the  face  thereof  to  be  due.  * * * 

6.  No  president,  director,  cashier,  clerk  or 
agent  of  any  Corp.  to  which  this  Chap,  is 
applicable,  and  no  person  in  any  way  inter- 
ested or  concerned  in  the  management  of  its 
affairs,  shall  as  individuals  discount,  or,  di- 
rectly or  indirectly,  make  any  loan  upon  any 
note  or  other  evidence  of  debt,  which  he  shall 
know  to  have  been  offered  for  discount  to 
such  Corp.,  and  to  have  been  refused.  * * * 

7.  No  officer,  director,  clerk  or  agent  of 
any  Bk.  shall  borrow,  directly  or  indirectly, 
from  the  Bk.  with  which  he  is  officially  con- 
nected any  sum  of  money  without  the  con- 
sent and  approval  of  a majority  of  the  board 
of  directors  thereof.  * * * 

8.  No  Corp.  to  which  this  Chap,  is  applicable 
except  a Sav.  and  Loan  Asso.,  shall  make  any 
loan  or  discount  on  the  security  of  the  shares 
of  its  own  capital  stock  nor  be  the  purchaser 
or  holder  of  any  such  shares  unless  such  se- 
curity or  purchase  shall  be  necessary  to  pre- 
vent loss  upon  a debt  previously  contracted 
in  good  faith ; and  stock  so  purchased  or 
acquired  shall,  within  6 Mos.  from  the  time 
of  its  purchase,  be  sold  or  disposed  of  at  pub- 
lic or  private  sale;  nor  shall  any  such  Corp., 
either  directly  or  indirectly,  knowingly  loan 
any  money  or  property  to  any  person  for  the 
purpose  of  enabling  him  to  pay  for  or  hold 
shares  of  its  stock  either  subscribed  for  or 
purchased  by  him  unless  such  loan  is  made 
upon  security  worth  at  least  15%  more  than 
the  amount  of  such  loan.  Any  Corp.  violat- 
ing either  of  the  provisions  of  this  Subdiv. 
shall  forfeit  to  the  people  of  the  state  twice 
the  amount  of  such  loan. 

9.  No  Corp.  to  which  this  Chap,  is  applicable 
shall  hereafter  make  a loan,  secured  by  the 
stock  of  another  moneyed  Corp.,  if  by  the 
making  of  such  loan  the  total  stock  of  such 
other  moneyed  Corp.  held  by  it  as  collateral 
will  exceed  in  the  aggregate  10%  of  the 
capital  stock  of  such  other  moneyed  Corp. 

Sec.  44.  The  depositaries  designated  by  the 
comptroller  to  receive  funds  or  moneys  paid 
into  court  shall  pay  a fair  rate  of  interest, 

17 


NEW  YORK. 


Trust  Companies. 


and  before  receiving  any  such  deposit  shall 
give  to  the  people  of  the  state  an  undertaking, 
in  such  form  as  the  attorney-general  shall  pre- 
scribe, such  undertaking  to  be  approved  by  the 
county  judge  of  the  county  in  which  such  sav- 
ings bank,  bank,  trust  company,  bank  associa- 
tion or  banker  shall  be  located,  and  by  the 
comptroller  of  the  state,  and  filed  in  the  of- 
fice of  the  comptroller,  and  such  undertak- 
ing shall  be  secured  by  deposit  of  bonds  as 
provided  by  Sec.  8 of  the  state  finance  law. 

Sec.  186.  Powers  of  corporation. 

2.  To  receive  deposits  of  trust  moneys, 
securities  and  other  personal  property  from 
any  person  or  Corp.,  and  to  loan  money 
on  real  or  personal  securities. 

3.  To  lease,  hold,  purchase  and  convey  any 
and  all  real  property  necessary  in  the  trans- 
action of  its  business,  or  which  the  purposes 
of  the  Corp.  may  require,  or  which  it  shall  ac- 
quire in  satisfaction  or  partial  satisfaction  of 
debts  due  the  Corp.  under  sales,  judgments 
or  Mtgs.,  or  in  settlement  or  partial  settle- 
ment of  debts  due  the  Corp.  by  any  of  its 
debtors. 

9.  To  purchase,  invest  in  and  sell  stocks,  bills 
of  exchange,  bonds  and  Mtgs.  and  other  se- 
curities ; and  when  moneys  or  securities  for 
moneys  are  borrowed  or  received  on  deposit, 
or  for  investment,  the  bonds  or  obligations 
of  the  Co.  may  be  given  therefor,  but  it  shall 
have  no  right  to  issue  bills  to  circulate  as 
money. 

11.  * * * No  ioan  exceeding  in  amount 
i-ioth  of  its  capital  stock,  shall  be  made 
by  any  such  Corp.,  directly  or  indirectly,  to 
any  director  or  officer  thereof  and  no  loan 
to  such  director  or  officer  shall  be  made  with- 
out the  consent  of  a majority  of  the  di- 
rectors. * * * 

Sec.  193.  The  capital  of  every  such  Corp. 
shall  be  invested  in  bonds  and  Mtgs.  on  un- 
incumbered real  property  in  this  state  not  ex- 
ceeding 60%  of  the  value  thereof,  or  in  the 

stocks  or  bonds  of  this  state,  or  of  the  U.  S., 
or  of  any  county  or  incorporated  city  of 
this  state  duly  authorized  by  law  to  be  is- 


Trust  Companies. 


NEW  YORK. 


sued.  Stocks  or  bonds  constituting  a part 
of  the  lawful  investment  of  capital  of  any 
such  Corp.  shall  not  be  valued  upon  its  books 
or  entered  in  its  reports  to  the  Supt.  of  Bks. 
at  a higher  price  or  value  than  their  invest- 
ment value  as  determined  by  amortization, 
after  providing  in  a manner  approved  by  the 
Supt.  of  Bks.  for  the  gradual  extinction  of 
premiums  or  discounts  on  all  such  securities 
so  as  to  bring  them  to  par  at  maturity.  The 
moneys  received  by  any  such  Corp.  in  trust 
may  be  invested  in  its  discretion  in  the  se- 
curities of  the  kind  in  which  its  capital  is  re- 
quired to  be  invested,  or  in  the  stocks  or 
bonds  of  any  state  of  the  U.  S.,  or  in  such 
real  or  personal  securities  as  it  may  deem 
proper.  No  such  Corp.  shall  hold  stock  in 
any  private  Corp.  to  an  amount  in  excess  of 
10%  of  the  capital,  surplus  and  undivided 
profits  of  the  Corp.  holding  such  stock ; nor 
shall  any  such  Corp.  hold  or  own  stock  of 
another  moneyed  Corp.  the  par  value  of 
which  is  in  excess  of  10%  of  the  total  amount 
of  the  stock  of  such  other  moneyed  Corp. 
issued  and  outstanding,  Provided,  however, 
that  this  limitation  shall  not  apply  to  the  own- 
ership of  capital  stock  of  a Safe  Dep.  Co. 
the  vaults  of  which  are  connected  with  or 
adjacent  to  an  office  of  such  Tr.  Co. 

Sec.  198.  Every  Tr.  Co.  having  its  princi- 
pal place  of  business  or  a branch  office  for 
the  receipt  and  payment  of  deposits  in  a bor- 
ough in  any  city  in  the  state  which  borough 
had  according  to  the  last  preceding  state  or 
U.  S.  census  a population  of  1,800,000  or  over 
shall  at  all  times  have  on  hand  a reserve 
fund  equal  to  at  least  15%  of  the  aggregate 
of  its  deposits,  exclusive  of  moneys  held  by 
it  in  trust,  which  are  not  made  payable  under 
the  conditions  of  the  trust  within  30  days  and 
also  exclusive  of  time  deposits  not  payable 
within  30  days  represented  by  certificates 
showing  the  amount  of  the  deposit,  the  date 
of  issue,  and  the  date  when  due  and  also  ex- 
clusive of  deposits  which  are  secured  by  out- 
standing unmatured  bonds  or  other  obliga- 
tions issued  by  the  state  of  N.  Y.,  or  secured 

19 


NEW  YORK. 


Trust  Companies. 


by  outstanding  unmatured  bonds,  corporate 
stock,  revenue  bonds,  assessment  bonds  or 
other  obligations  issued  by  the  city  of  N.  Y., 
and  exclusive  also  of  an  amount  equal  to 
the  market  value,  but  not  exceeding  the  par  , 
value,  of  any  such  bonds  or  other  obligations  ( 
of  the  state  of  N.  Y.  or  of  the  city  of  N.  Y. 
owned  and  held  by  such  Tr.  Co.  or  held  by 
a public  department,  a public  officer  or  of- 
ficers of  this  state,  or  of  any  other  state,  or 
of  the  U.  S.,  in  trust  for  such  Tr.  Co. . The 
whole  of  such  reserve  fund  must  consist  of 
either  lawful  money  of  the  U.  S.,  gold  certi- 
ficates, silver  certificates,  or  notes  or  bills  is- 
sued by  any  lawfully  organized  national  bank- 
ing association.  Every  Tr.  ,Co.  having  its 
principal  place  of  business  in  a borough  in 
any  city  in  the  state  which  borough  had  ac- 
cording to  the  last  preceding  state  or  U.  S. 
census  a population  of  less  than  1,800,000 
which  does  not  maintain  a branch  office  in  a 
borough  having  a population  of  over  1,800,- 
000  inhabitants  according  to  the  last  preced- 
ing state  or  U.  S.  census,  shall  at  all  times 
have  on  hand  a reserve  fund  equal  to  at  least 
15%  of  the  aggregate  of  its  deposits,  exclu- 
sive of  moneys  held  by  it  in  trust,  which  are 
not  made  payable  under  the  conditions  of 
the  trust  within  30  days  and  also  exclusive 
of  time  deposits  not  payable  within  30  days 
represented  by  certificates  showing  the  amount 
of  the  deposit,  the  date  of  issue  and  the  date 
when  due  and  also  exclusive  of  deposits  which 
are  secured  by  outstanding  unmatured  bonds 
or  other  obligations  issued  by  the  state  of 
N.  Y.,  or  secured  by  outstanding  unmatured 
bonds,  corporate  stock,  revenue  bonds,  assess- 
ment bonds  or  other  obligations  issued  by 
the  city  of  N.  Y.,  and  exclusive  also  of  an 
amount  equal  to  the  market  value,  but  not 
exceeding  the  par  value,  of  any  such  bonds  A 
or  other  obligations  of  the  state  of  N.  Y.  or 
of  the  city  of  N.  Y.  owned  and  held  by  such 
Tr.  Co.  or  held  by  a public  department,  a 
public  officer  or  officers  of  this  state,  or  of 
any  other  state,  or  of  the  U.  S.,  in  trust  for 
such  Tr.  Co.  The  whole  of  such  reserve  fund 


20 


Trust  Companies. 


NEW  YORK. 


may,  and  at  least  2-3rds  thereof  must,  consist 
of  either  lawful  money  of  the  U.  S.,  gold  cer- 
tificates, silver  certificates,  or  notes  or  bills 
issued  by  any  lawfully  organized  national 
banking  association,  and  the  balance  thereof 
over  and  above  the  part  consisting  of  law- 
ful money  of  the  U.  S.,  gold  certificates,  sil- 
ver certificates,  notes  or  bills  issued  by  any 
lawfully  organized  national  banking  associa- 
tion must  consist  of  moneys  on  deposit  sub- 
ject to  call  in  any  Bk.  or  Tr.  Co.  in  this  state 
having  a capital  of  at  least  $200,000  or  a capi- 
tal and  surplus  of  at  least  $300,000,  and  ap- 
proved by  the  Supt.  of  Bks.  Every  Tr.  Co. 
having  its  principal  place  of  business  else- 
where in  this  state  shall  at  all  times  have  on 
hand  a reserve  fund  equal  to  at  least  10%  of 
its  aggregate  deposits,  exclusive  of  moneys 
held  by  it  in  trust  which  are  not  made  pay- 
able under  the  conditions  of  the  trust  within 
30  days  and  also  exclusive  of  time  deposits 
not  payable  within  30  days  represented  by  cer- 
tificates showing  the  amount  of  deposit,  the 
date  of  issue  and  the  date  when  due  and  also 
exclusive  of  deposits  which  are  secured  by 
outstanding  unmatured  bonds  or  other  obliga- 
tions issued  by  the  state  of  N.  Y.,  or  secured 
by  outstanding  unmatured  bonds,  corporate 
stock,  revenue  bonds,  assessment  bonds  or 
other  obligations  issued  by  the  city  of  N.  Y., 
and  exclusive  also  of  an  amount  equal  to  the 
market  value,  but  not  exceeding  the  par  value, 
of  any  such  bonds  or  other  obligations  of 
the  state  of  N.  Y.  or  of  the  city  of  N.  Y. 
owned  and  held  by  such  Tr.  Co.  or  held  by 
a public  department,  a public  officer  or  officers 
of  this  state,  or  of  any  other  state,  or  of 
the  U.  S.,  in  trust  for  such  Tr.  Co.  The 
whole  of  such  last  mentioned  reserve  fund  may, 
and  at  least  50%  thereof  must,  consist  either 
of  lawful  money  of  the  U.  S.,  gold  certifi- 
cates, silver  certificates,  or  notes  or  bills,  is- 
sued by  any  lawfully  organized  national  bank- 
ing association ; and  the  balance  thereof 
over  and  above  the  part  consisting  of  law- 
ful money  of  the  U.  S.,  gold  certificates,  sil- 
ver certificates,  notes  and  bills,  issued  by  any 

21 


NEW  YOEK.  State  Banks  of  Discount  and  Deposit. 

lawfully  organized  national  banking  associa- 
tion, must  consist  of  money  on  deposit  sub- 
ject to  call  in  any  Bk.  or  Tr.  Co.  in  this 
state  having  a capital  of  at  least  $200,000 
or  a capital  and  surplus  of  at  least  $300,000 
and  approved  by  the  Supt.  of  Bks.  The 
amounts  to  be  kept  on  hand,  as  above  pro- 
vided, shall  be  called  the  lawful  money  re- 
serve. If  the  lawful  money  reserve  of  any 
Tr.  Co.  shall  be  less  than  the  amount  required 
by  this  Sec.  such  Tr.  Co.  shall  not  increase 
its  liability  by  making  any  new  loans  or  dis- 
counts otherwise  than  by  discounting  bills  of 
exchange,  payable  on  sight  * * * until  the 
full  amount  of  its  lawful  money  reserve  has 
been  restored.  * * * 

(See,  also,  Sec.  27,  under  State  Bks.) 


STATE  BANKS  OF  DISCOUNT  AND  DEPOSIT. 


f 


Sec.  27.  (7)  No  officer,  director,  clerk  or 

agent  of  any  Corp.  to  which  this  Chap,  is  ap- 
plicable shall  borrow,  directly  or  indirectly, 
from  the  Corp.  with  which  he  is  connected 
any  sum  of  money  without  the  consent  and 
approval  of  a majority  of  the  board  of  direc- 
tors thereof.  If  an  officer,  director,  clerk 
or  agent  of  any  Corp.  to  which  this  Chap, 
is  applicable  shall  own  or  control  a majority 
of  the  stock  of  any  other  Corp.  a loan  to  that 
Corp.  shall  be  considered  for  the  purpose  of 
this  subdiv.  as  a loan  to  such  officer,  director, 
clerk  or  agent.  * * * 

Sec.  66.  In  addition  to  the  powers  con- 
ferred by  the  general  and  stock  Corp.  laws 
every  Bk.  shall  have  power : 

1.  To  exercise  by  its  boards  of  directors, 
or  duly  authorized  officers  or  agents,  subject 
to  law,  all  such  incidental  powers  as  shall  be 
necessary  to  carry  on  the  business  of  bank- 
ing; by  discounting  and  negotiating  promis- 
sory notes,  drafts,  bills  of  exchange  and 
other  evidences  of  debt;  * * * by  loaning 
money  on  personal  security;  * * * 

2.  To  take  and  become  the  owner  of  any 
stocks  or  bonds  or  interest-bearing  obliga- 


00 


State  Banks  of  Discount  and  Deposit.  NEW  YORK. 


tions  of  the  U.  S.,  or  of  the  state  of  N.  Y., 
or  of  any  city,  county,  town  or  village  of 
this  state,  the  interest  on  which  is  not  in 
arrears. 

3.  To  purchase,  hold  and  convey  real  prop- 
erty for  the  following  purposes : 

a.  Such  as  shall  be  necessary  for  its  im- 
mediate accommodation  in  the  convenient 
transaction  of  its  business. 

b.  Such  as  shall  be  mortgaged  to  it  in  good 
faith,  by  way  of  security  for  loans  made  by, 
or  moneys  due  to,  such  Corp. 

c.  Such  as  shall  be  conveyed  to  it  in  satis- 
faction of  debts  previously  contracted  in  the 
course  of  its  dealings. 

d.  Such  as  it  shall  purchase  at  sales  under 
judgments,  decrees  or  Mtgs.  held  by  it. 

No  such  Corp.  shall  purchase,  hold  or  con- 
vey real  property  in  any  other  case  or  for 
any  other  purpose,  and  all  conveyances  of  real 
property  shall  be  made  to  it  directly  and  by 
name. 

Sec.  67.  Every  Bk.  * * * shall  at  all  times 
have  on  hand  in  lawful  money  of  the  U.  S., 
gold  certificates,  silver  certificates,  or  notes 
or  bills  issued  by  any  lawfully  organized  na- 
tional banking  association  an  amount  equal 
to  at  least  25%  of  the  aggregate  amount  of 
its  deposits,  exclusive  of  time  deposits  not 
payable  within  30  days,  represented  by  certifi- 
cates showing  the  amount  of  the  deposit,  the 
date  of  issue  and  the  date  when  due,  and, 
also,  exclusive  of  deposits  which  are  secured 
by  outstanding  unmatured  bonds  or  other 
obligations  issued  by  the  state  of  N.  Y.,  or 
secured  by  outstanding  unmatured  bonds, 
corporate  stock,  revenue  bonds,  assessment 
bonds  or  other  obligations  issued  by  the  city 
of  N.  Y.,  and  exclusive  also  of  an  amount 
equal  to  the  market  value,  but  not  exceed- 
ing the  par  value,  of  any  such  bonds  or  other 
obligations  of  the  state  of  N.  Y.  or  of  the 
city  of  N.  Y.  owned  and  held  by  such  Bk. 
* * * or  held  by  a public  department,  a pub- 
lic officer  or  officers  of  this  state,  or  of  any 
other  state,  or  of  the  U.  S.,  in  trust  for  such 
Bk.  * * *,  if  its  principal  place  of  business 


23 


NEW  YORK.  State  Banks  of  Discount  and  Deposit. 

is  located  in  any  borough  in  any  city  of  the 
state  which  borough  according  to  the  last 
preceding  state  or  U.  S.  census  had  a popu- 
lation of  1,800,000  or  over;  and  an  amount 
equal  to  at  least  20%  of  the  aggregate  amount 
of  its  deposits,  exclusive  of  time  deposits  not 
payable  within  30  days,  represented  by  cer- 
tificates showing  the  amount  of  the  deposit, 
the  date  of  issue  and  the  date  when  due,  and, 
also  exclusive  of  deposits  which  are  secured 
by  outstanding  unmatured  bonds  or  other 
obligations  issued  by  the  state  of  N.  Y.,  or 
secured  by  outstanding  unmatured  bonds, 
corporate  stock,  revenue  bonds,  assessment 
bonds  or  other  obligations  issued  by  the  city 
of  N.  Y.,  and  exclusive  also  of  an  amount 
equal  to  the  market  value,  but  not  exceeding 
the  par  value,  of  any  such  bonds  or  other  ob- 
ligation of  the  state  of  N.  Y.  or  of  the  city 
of  N.  Y.  owned  and  held  by  such  Bk.  * * *, 
or  held  by  a public  department,  a public  officer 
or  officers  of  this  state,  or  of  any  other 
state,  or  of  the  U.  S.,  in  trust  for  such  Bk. 
* * *,  if  its  principal  place  of  business  is 
located  in  any  borough,  which  borough  accord- 
ing to  the  last  preceding  state  or  U.  S.  census 
had  a population  of  1,000,000  or  over,  and 
less  than  1,800,000;  and  an  amount  equal  to 
at  least  15%  of  the  aggregate  amount  of  its 
deposits,  exclusive  of  time  deposits  not  pay- 
able within  30  days,  represented  by  certificates 
showing  the  amount  of  the  deposit,  the  date 
of  issue  and  the  date  when  due,  and,  also, 
exclusive  of  deposits  which  are  secured  by 
outstanding  unmatured  bonds  or  other  obli- 
gations issued  by  the  state  of  N.  Y.,  or  se- 
cured by  outstanding  unmatured  bonds,  cor- 
porate stock,  revenue  bonds,  assessment  bonds 
or  other  obligations  issued  by  the  city  of 
N.  Y.,  and  exclusive  also  of  an  amount  equal 
to  the  market  value,  but  not  exceeding  the 
par  value,  of  any  such  bonds  or  other  obli- 
gations of  the  state  of  N.  Y.  or  of  the  city 
of  N.  Y.  owned  and  held  by  such  Bk.  * * *, 
or  held  by  a public  department,  a public  of- 
ficer or  officers  of  this  state,  or  of  any  other 
state,  or  of  the  U.  S.,  in  trust  for  such  Bk. 


24 


State  Banks  of  Discount  and  Deposit.  NEW  YORK. 


* * * if  its  principal  place  of  business  is  lo- 
cated elsewhere  in  the  state.  The  amount 
thus  to  be  kept  on  hand  shall  be  called  its 
lawful  money  reserve.  2-5ths  of  such  law- 
ful money  reserve  of  any  Bk.  * * * located 
in  any  borough  in  any  city  in  the  state  which 
borough  according  to  the  last  preceding  state 
or  U.  S.  census  had  a population  of  1,800,000 
or  over,  of  such  lawful  money  reserve  of 
any  Bk.  * * * located  in  any  borough  in  any 
city  of  the  state  which  borough  according  to 
the  last  preceding  state  or  U.  S.  census  had 
a population  of  less  than  1,800,000  and  which 
Bk.  * * * does  not  maintain  a branch  office 
in  any  borough  having  a population  accord- 
ing to  the  last  preceding  state  or  U.  S.  cen- 
sus of  1,800,000  or  over,  and  3~5ths  of  the 
lawful  money  reserve  of  any  Bk.  * * * located 
elsewhere  in  the  state  may  consist  of  moneys 
on  deposit  subject  to  call  with  any  Bk.  or 
Tr.  Co.  in  this  state  having  a capital  of  at 
least  $200,000,  or  a capital  of  at  least  $150,000 
and  a surplus  of  at  least  $150,000,  and  ap- 
proved by  the  Supt.  of  Bks.  as  a depositary 
of  lawful  money  Reserve.  If  the  lawful 
money  reserve  of  any  Bk.  * * * shall  be  less 
than  the  amount  required  by  this  section, 
such  Bk.  * * * shall  not  increase  its  liabilities 
by  making  any  new  loans  or  discount  other- 
wise than  by  discounting  bills  of  exchange 
payable  on  sight,  * * * until  the  full  amount 
of  its  lawful  money  reserve  has  been  re- 
stored. * * * 

Sec.  74.  Every  Bk.  * * * may  take,  re- 
ceive, reserve  and  charge  on  every  loan  and 
discount  made,  or  upon  any  note,  bill  of  ex- 
change or  other  evidence  of  debt,  interest  at 
the  rate  of  6%*  per  annum ; and  such  in- 
terest may  be  taken  in  advance,  reckoning 
the  days  for  which  the  note,  bill  or  evidence 
of  debt  has  to  run. 

* * * The  purchase,  discount  or  sale  of  a 
bona  fide  bill  of  exchange,  note  or  other  evi- 
dence of  debt  payable  at  another  place  than 
the  place  of  such  purchase,  discount  or  sale 

* No  higher  rate  is  permitted. 

25 


NEW  YORK.  State  Banks  of  Discount  and  Deposit. 

at  not  more  than  the  current  rate  of  exchange 
for  sight  draft,  or  a reasonable  charge  for 
the  collection  of  the  same,  in  addition  to  the 
interest,  shall  not  be  considered  as  taking  or 
receiving  a greater  rate  of  interest  than  6% 
per  annum. 

Sec.  75.  Upon  advances  of  money  repay- 
able on  demand  to  an  amount  not  less  than 
$5,000  made  upon  warehouse  receipts,  bills 
of  lading,  certificates  of  stock,  certificates  of 
deposit,  bills  of  exchange,  bonds  or  other 
negotiable  instruments,  pledged  as  collateral 
security  for  such  repayment,  any  Bk.  * * * 
may  receive  or  contract  to  receive  and  col- 
lect as  compensation  for  making  such  ad- 
vances any  sum  to  be  agreed  upon  in  writ- 
ing by  the  parties  to  such  transaction. 

Sec.  76.  Every  Bk.  * * * heretofore  or 
hereafter  authorized  to  do  business,  not  hav- 
ing given  notice  of  intention  to  close  the 
business  of  banking,  shall,  before  commenc- 
ing or  continuing  such  business,  have  and 
keep  on  deposit  in  the  banking  dept,  in  ad- 
dition to  the  deposit  required  to  secure  cir- 
culating notes,  stocks  of  this  state  or  of  the 
U.  S.  bearing  interest,  to  the  amount  of 
$1,000,  which  shall  be  held  by  the  Supt.  of 
t Bks.  as  a pledge  of  good  faith,  and  guaranty 
J|  of  compliance  with  the  banking  laws  of  the 
state  on  the  part  of  such  Bk.  * * * The  pro- 
ceeds of  such  stock  or  the  interest  thereon, 
or  so  much  thereof  as  may  be  necessary, 
may  be  applied  by  the  Supt.  to  the  payment 
of  any  penalty  incurred  by,  or  the  assess- 
ment imposed  upon,  the  Bk.  * * * for  whom 
such  deposit  is  held.  * * * 

Whenever  any  Bk.  * * * is  required  by  law 
to  make  a deposit  of  securities  with  the  Supt. 
of  Bks.  in  trust  for  such  Bk.  * * *,  such 
deposit  shall  consist  of  interest-bearing  -stock 
of  the  state  of  N.  Y.  or  of  the  U.  S. 

See,  also,  Secs.  27,  44,  and  67  under  Tr. 
Cos. 


> 


! , 


26 


Savings  Banks. 


OHIO. 


Municipal  Law  in  red.  Street  Railway  Law  in 

Railroad  Law  in  green.  brown. 

Other  matter  in  black. 


OHIO 

Corrected  to  and  including  1911,  Sess.  of  Leg. 

SAVINGS  BANKS. 

Sec.  9729.  * * * No  loan  shall  be  made, 
directly  or  indirectly,  to  an  officer,  or  member 
of  the  executive  committee  of  such  a Corp., 
unless  duly  authorized  by  a majority  of  the 
members  of  the  board  of  directors.  Such 
authorization  shall  be  recorded  on  the  records 
of  their  proceedings,  and  all  loans  when  so 
authorized  and  made  to  officers,  or  members 
of  the  executive  committee  shall  be  made  and 
secured  in  the  same  manner  as  loans  to  other 
persons. 

Sec.  9744.  Nothing  in  this  Chap,  shall  affect 
the  legality  of  investments  heretofore  made, 
or  of  transactions  heretofore  had,  but  the  Supt. 
of  Bks.  may  require  the  change  of  investments 
for  those  named  herein,  as  it  can  be  done  by 
the  sale  or  redemption  of  securities  so  in- 
vested in,  in  such  manner  as  to  prevent  loss  or 
injury  to  the  Bk.  No  renewal  or  extension 
of  such  a loan  or  investment  shall  be  made 
by  such  a Corp.  unless  it  be  approved  by  the 
Supt.  of  Bks. 

Sec.  9762.  A Sav.  Bk.  may  purchase,  lease, 
hold  and  convey  real  estate  for  the  purposes 
and  in  the  manner  hereinbefore  provided  as 
to  Commercial  Bks.,  and  subject  to  like  re- 
strictions and  limitations. 

Sec.  9764.  Sav.  Bks.  shall  keep  as  a reserve 
the  same  percentage  of  their  deposits  as  Com- 
mercial Bks.,  subject  to  the  same  restrictions 
as  to  such  reserve,  except  that  of  the  re- 
serve required  to  oe  kept  in  the  vaults  of  the 
Bk.  may  be  invested  in  the  securities  named 
in  paragraphs  b and  c of  Sec.  9758,  and  the 
bonds  of  any  city  or  county  within  this  state. 
When  the  reserve  of  a Sav.  Bk.  required  to  be 
kept  in  its  vaults  exceeds  $500,000,  the  amount 
in  excess  thereof  may  be  invested  in  bonds 
or  other  interest  bearing  obligations  of  the  U.  S. 

l 


OHIO. 


Savings  Banks. 


Sec.  9765.  A Sav.  Bk.  may  invest  the  resi- 
due of  its  funds  in,  or  loan  money  on,  discount, 
buy,  sell  or  assign  promissory  notes,  drafts, 
bills  of  exchange  and  other  evidences  of  debt 
and  also  invest  its  capital,  surplus  and  deposits 
in,  and  buy  and  sell  the  following: 

a.  The  securities  mentioned  in  Sec.  9758,* 
subject  to  the  limitations  and  restrictions  there- 
in contained,  except  that  Sav.  Bks.  may  loan 
not  more  than  75%  of  the  amount  of  the 
paid-in  capital,  surplus  and  deposits  on  notes 
secured  by  Mtg.  on  real  estate.  But  all  loans 
made  upon  personal  security  shall  be  upon 
notes  with  two  or  more  signers  or  one  or 
more  indorsers,  payable  and  to  be  paid  at  a 
time  not  exceeding  6 mos.  from  the  date 
thereof.  In  the  aggregate,  not  exceeding  30% 
of  the  capital,  surplus  and  deposits  of  a Sav. 
Bk.  shall  be  so  invested. 

b.  Stocks,  which  have  paid  dividends  for 
5 consecutive  yrs.  next  prior  to  the  investment, 
bonds,  and  promissory  notes  of  Corps., f when 
this  is  authorized  by  an  affirmative  vote  of  a 
majority  of  the  board  of  directors  or  by  the 
executive  committee  of  such  Sav.  Bk.  No 
purchase  or  investment  shall  be  made  in  the 
stock  of  any  other  Corp.  organized  or  doing 
business  under  the  provisions  of  this  Chap. 
The  Supt.  of  Bks  may  order  any  such  securi- 
ties which  he  deems  undesirable  to  be  sold 
within  6 mos. 

c.  Promissory  notes  of  individuals,  firms  or 
Corps.,  when  secured  by  a sufficient  pledge  of 
collateral  approved  by  the  directors,  subject 
to  the  provisions  of  Secs.  9754  and  9755. 

Sec.  9766.  When  the  reserve  of  any  Sav. 
Bk.  falls  below  the  amount  required,  it  shall 
be  governed  by  the  provisions  of  Sec.  9760. 

Sec.  9771.  The  total  liabilities,  including 
overdrafts,  of  any  person,  Co.,  Corp.  or  firm 


* Part  of  Sec.  9758  refers  to  municipal  and  part  to 
railroad  securities. 

t The  Department  of  Banks  and  Banking  holds  that 
inasmuch  as  the  banking  law  does  not  mention  “ rail- 
road ” corporations  specifically  that  they  are  included 
in  the  general  use  of  the  word  “ corporations.” 


Ol 


Savings  Banks. 


OHIO 


to  a Sav.  Bk.,  either  as  principal  debtor  or  as 
security  or  indorser  for  others,  for  money 
borrowed,  at  no  time  shall  exceed  20%  of  the 
paid-up  capital  and  surplus  of  such  Corp. 
But  the  discount  of  bills  of  exchange  drawn 
against  actually  existing  values,  and  the  dis- 
count of  commercial  or  business  paper  actually 
owned  by  the  person,  Co.,  Corp.  or  firm  nego- 
tiating it  shall  not  be  considered  as  money 
borrowed. 

Sec.  9790.  Not  more  than  20%  of  the  cap- 
ital and  surplus  of  a Corp.  doing  business 
under  this  Chap,  shall  be  invested  in  any  one 
stock  security  or  loan,  unless  it  be  in  bonds 
or  other  interest  bearing  obligations  enumer- 
ated in  paragraphs  b,  c and  d of  Sec.  9758,  or 
in  a building  and  vaults. 

Sec.  9822.  Safe  Dep.  and  Tr.  Cos.  (also 
Sav.  Societies  & Sav.  & Loan  Associations) 
organized  or  doing  business  under  the  laws 
of  this  state,  in  addition  to  the  powers  here- 
tofore conferred  upon  such  Corps.,  in  addition 
to  the  investments  hereinbefore  authorized, 
may  loan  and  invest  the  funds,  moneys  and 
property  owned  or  received  by  such  Cos. 
respectively,  and  to  the  respective  amounts 
to  which  they  are  limited  in  other  loans  and 
investments,  in  legally  authorized  1st  Mtg. 
bonds  or  Steamship  Cos.  Such  Mtg.  shall  be 
upon  steel  steamships  or  steamships  for  the 
carriage  of  freight,  or  package,  freight  and 
passengers  combined  upon  the  great  lakes  and 
connecting  waters,  of  at  least  5,000  tons  carry- 
ing capacity  each.  Such  bonds  shall  be  issued 
at  the  time  of  the  completion  and  enrollment 
of  the  steamship  or  steamships,  or  within 
5 yrs  thereafter.  The  Mtg.  by  express  terms 
shall  state  that  at  least  10%  of  the  total  issue 
of  such  bonds  shall  be  retired,  annually,  begin- 
ning within  2 yrs.  from  the  date  thereof,  and 
the  Mtg.  liability  against  such  property  shall 
not  exceed  of  its  actual  cost. 

Sec.  9823.  The  terms  of  such  Mtg.  shall 
specifically  state  that  the  mortgagor  shall  not 
suffer  any  steamship  so  mortgaged  to  be  in- 
debted at  any  time  in  an  amount  in  the  aggre- 

3 


OHIO. 


Trust  Companies. 


! 

I 


gate  exceeding  5%  of  its  actual  cost,  and  that 
the  failure  of  the  mortgagor  forthwith  to  pro- 
cure the  release  of  mechanics’,  laborers’, 
admiralty,  statutory  or  other  liens,  claims  or 
charges  against  such  steamship,  shall  consti- 
tute a default  in  the  provisions  of  the  Mtg. 

Sec.  9824.  The  trustees  of  such  Mtg.  shall 
be  required  to  protect  such  lien  by  attending 
to  the  recording  thereof,  and  causing  the  prop- 
erty covered  to  be  insured  against  all  risks 
on  vessel  property  ordinarily  covered  by  such 
Ins.  including  marine  risks  and  disasters,  gen- 
eral and  particular  average,  collision,  liability, 
protection  and  indemnity  Ins.,  and  Ins.  against 
liability  for  injuries  to  persons  in  Ins.  Cos., 
and  under  forms  of  policies  approved  by  the 
trustees  for  an  amount  equal  to  the  full  Ins. 
value  of  such  steamship  or  steamships.  Such 
Ins.  shall  be  made  with  loss  payable  to  the 
trustee  and  the  policies  deposited  with  them. 

See  also  Sec.  9761  under  Commercial  Bks. 


TRUST  COMPANIES. 

Sec.  9774.  A Tr.  Co.  may  purchase,  lease, 
hold  and  convey  real  estate,  exclusive  of  trust 
property,  for  the  purpose  and  in  the  manner 
provided  by  this  Chap,  as  to  Commercial  Bks., 
and  subject  to  like  restrictions  and  limitations. 

Sec.  9778.  No  such  Corp.  either  foreign  or 
domestic  shall  accept  trusts  which  may  be 
vested  in,  transferred  or  committed  to  it  by 
an  individual,  or  court,  until  its  paid-in  capital 
is  at  least  $100,000,  and  until  such  Corp.  has 
deposited  with  the  treasurer  of  state  in  cash 
$50,000  if  its  capital  is  $200,000  or  less,  and 
$100,000  if  its  capital  is  more  than  $200,000, 
except  that,  the  full  amount  of  such  deposit 
by  such  Corp.  may  be  in  bonds  of  the  U.  S., 
or  of  this  state,  or  any  municipality  or  county 
therein,  or  in  any  other  state,  or  in  the  1st  / 

Mtg.  bonds  of  any  R.  R.  Corp.  that  for  5 yrs.  v 

last  past  paid  dividends  of  at  least  3%  on  its 
common  stock. 

Sec.  9779.  The  treasurer  of  state  shall  hold 
such  fund  or  securities  deposited  with  him  as 
security  for  the  faithful  performance  of  the 


Trust  Companies. 


trusts  assumed  by  such  Corp.,  but  so  long  as 
it  continues  solvent  he  shall  permit  it  to  collect 
the  interest  on  its  securities  so  deposited. 
From  time  to  time  said  treasurer  shall  permit 
withdrawals  of  such  securities  or  cash,  or 
part  thereof,  on  the  deposit  with  him  of  cash, 
or  other  securities  of  the  kind  heretofore 
named,  so  as  to  maintain  the  value  of  such 
deposit  as  herein  provided. 

Sec.  9781.  Moneys  or  properties  received 
on  deposits  or  in  trust  by  such  Corp.,  unless 
by  the  terms  of  the  trust  some  other  mode 
of  investment  is  prescribed,  together  with  its 
capital  and  surplus,  excepting  such  as  is  re- 
quired to  be  kept  as  a reserve,  shall  be  invested 
in  or  loaned  only  on  the  following: 

a.  The  securities  mentioned  in  paragraphs 
bjC,d,  e*  f of  Sec.  9758,  subject  to  the  limita- 
tions and  restrictions  contained  in  said  para- 
graphs, except  that  Tr.  Cos.  shall  not  loan 
more  than  60%  of  the  amount  of  their  paid-in 
capital,  surplus  and  deposits  on  notes  secured 
by  Mtg.  on  real  estate; 

b.  Stocks,  which  have  paid  dividends  for 
5 consecutive  yrs.  next  prior  to  the  invest- 
ment, and  bonds  of  Corps.f  when  they  are 
authorized  by  the  affirmative  vote  of  the 
majority  of  the  board  of  directors  or  of  the 
executive  committee  of  such  Tr.  Co.;  but  the 
Supt.  of  Bks.  may  order  that  any  such  secu- 
rities which  he  deems  undesirable  shall  be  sold 
within  6 mos. ; 

c.  Promissory  notes  of  individuals,  firms, 
or  Corps.,  when  secured  by  a sufficient  pledge 
of  collateral,  approved  by  the  directors,  subject 
to  the  provisions  of  Secs.  9754  and  9755. 

Sec.  9782.  All  moneys  or  properties  received 
in  trust  by  such  Co.,  unless  by  the  terms  of 
the  trust  some  other  mode  of  investment  is 
prescribed,  together  with  the  capital  and  sur- 
plus of  such  Corp.,  also  may  be  invested  in 


* This  in  part  refers  to  railroad  securities, 
t The  Department  of  Banks  and  Banking  holds  that 
inasmuch  as  the  banking  law  does  not  mention  u rail- 
road ” corporations  specifically  that  they  are  included 
in  the  general  use  of  the  word  “ corporations.” 


OHIO. 


Trust  Companies. 


ground  rents,  when  authorized  by  a vote  of 
the  board  of  directors. 

Sec.  9783.  Not  more  than  20%  of  the  capital 
and  surplus  of  any  such  Corp.  shall  be  in- 
vested in  any  one  security  or  loan  unless  it 
be  in  bonds  or  other  interest  bearing  obliga- 
tions enumerated  in  paragraphs  b,  c and  d of 
Sec.  9758,  or  in  providing  a building  and  vaults. 

Sec.  9784.  No  investment  in  notes  secured 
by  Mtg.  on  real  estate  shall  be  made  by  such 
Corp.  except  upon  the  approval  of  the  board 
of  directors. 

Sec.  9785.  No  Tr.  Co.  shall  lend  any  part 
of  its  capital  or  surplus  unless  such  loan  be 
secured  by  bonds  or  stocks  as  collateral  in 
which  it  is  allowed  to  invest  its  capital,  or  by 
Mtg.  on  real  estate,  where  the  amount  loaned 
inclusive  of  prior  incumbrances  thereon  does 
not  exceed  60%  of  the  value  of  the  real  estate, 
including  improvements,  which  shall  be  kept 
adequately  insured;  nor  shall  such  Corp.  lend 
to  any  one  person,  firm,  association  or  Corp. 
more  than  20%  of  its  paid-in  capital  and 
surplus. 

Sec.  9787.  Tr.  Cos.  shall  keep  the  same 
reserve  as  is  required  of  Sav.  Bks.,  but  they 
shall  not  be  required  to  keep  a reserve  on 
trust  funds.  When  the  reserve  of  a Tr.  Co. 
falls  below  the  amount  required,  it  shall  be 
governed  by  the  provisions  of  Sec.  9760.  This 
Sec.  does  not  apply  to  money  or  property 
held  in  trust. 

Sec.  9788.  In  the  management  of  money  and 
property  held  by  it  as  trustee,  under  the  pow- 
ers conferred  in  the  foregoing  Secs.,  such 
Tr.  Co.  may  invest  them  in  a general  trust 
fund  of  the  Corp.  But  the  authority  making 
the  appointment,  upon  the  conferring  of  it, 
may  direct  whether  such  money  and  property 
shall  be  held  separately  or  invested  in  a gen- 
eral  trust  fund  of  the  Corp.;  except  that  such 
Corp.  always  shall  follow  and  be  governed 
by  all  directions  contained  in  any  instrument 
under  which  it  acts. 

See  also  Secs.  9729,  9744,  9790,  9822,  9823 

6 


Commercial  Banks. 


OHIO. 


and  9824  under  Sav.  Bks. ; also  Sec.  9761 
under  Commercial  Bks. 


COMMERCIAL  BANKS. 


Sec.  9753.  A Commercial  Bk.  may  purchase, 
lease,  hold  and  convey  real  estate  only  as 
follows : 

a.  Real  estate  whereon  is  erected  or  may  be 
erected  a building  or  buildings  useful  for  the 
convenient  transaction  of  its  business,  and 
from  portions  of  which,  not  required  for  its 
use,  a revenue  may  be  derived;  but  the  cost 
of  such  building  or  buildings  and  the  real 
estate  whereon  they  are  erected,  in  no  case 
shall  exceed  60%  of  its  paid-in  capital  and 
surplus ; 

b.  Such  as  is  mortgaged  or  conveyed  to  it 
in  good  faith  by  way  of  security  for  loans 
made  by  or  money  due  to  such  Corp. ; 

c.  Such  as  has  been  purchased  by  it  at  sales 
upon  the  foreclosure  of  Mtgs.  owned  by  it, 
or  on  judgments  or  decrees  obtained  or  rend- 
ered for  debts  due  to  it,  or  in  settlements 
effected  to  secure  such  debts.  All  real  prop- 
erty referred  to  in  this  paragraph  shall  be 
sold  by  such  Corp.  within  5 yrs.  after  it 
vested  therein,  unless  upon  application  by  the 
board  of  directors,  the  Supt.  of  Bks.  extends 
the  time  within  which  such  sales  shall  be 
made ; 

d.  Such  Corp.  also  shall  have  power  by 
lease  to  acquire  a suitable  building  for  the 
convenient  transaction  of  its  business,  and 
from  portions  of  which,  not  needed  for  its 
own  use,  a revenue  may  be  derived. 

Sec.  9754-  A Bk.  doing  business  as  a Com- 
mercial Bk.,  shall  not  lend,  including  over- 
drafts, to  any  one  person,  firm  or  Corp.,  more 
than  20%  of  its  paid-in  capital  and  surplus, 
unless  such  loan  be  secured  by  1st  Mtg.  upon 
improved  farm  property  in  a sum  not  to  ex- 
ceed 60%  of  its  value.  The  total  liabilities,  in- 
cluding overdrafts,  of  a person,  Co.,  Corp.,  or 
firm  to  any  Bk.  either  as  principal  debtor  or 
as  security  or  indorser  for  others,  for  money 

7 


Commercial  Banks. 


borrowed,  at  no  time  shall  exceed  20%  of  its 
paid-in  capital  stock  and  surplus.  But  the 
discount  of  bills  of  exchange  drawn  against 
actually  existing  values,  and  the  discount  of 
commercial  or  business  paper  actually  owned 
by  the  person,  Co.,  Corp.  or  firm  negotiating 
it,  shall  not  be  considered  as  money  borrowed. 

Sec.  9755.  The  deposits  of  funds  in  a Bk. 
or  Tr.  Co.,  not  duly  designated  as  a deposi- 
tory by  the  board  of  directors  as  hereinafter 
provided,  shall  be  held  to  be  a loan  within  the 
meaning  of  the  preceding  Sec. 

Sec.  9756.  Loans  by  a Commercial  Bk. 
upon  Mtg.  or  other  forms  of  real  estate  secu- 
rity, shall  not  be  made  until  after  the  adoption 
of  a general  resolution  by  a ?^rds  vote  of  the 
board  of  directors,  stating  to  what  extent  its 
officers  may  loan  on  real  estate.  The  aggre- 
gate amount  of  such  loans  shall  not  exceed 
50%  of  the  capital,  surplus  and  deposits  of 
such  Corp. ; except  that,  if  a Bk.  combines 
the  business  of  a Commercial  and  Sav.  Bk., 
it  may  lend  up  to  60%  of  its  capital  stock, 
surplus  and  deposits  upon  real  estate  security, 
after  the  adoption  of  a general  resolution 
authorizing  it  by  a ^rds  vote  of  the  board  of 
directors.  Such  loans  shall  be  upon  real  estate, 
situated  in  this  state,  or  in  states  immediately 
adjacent  thereto,  and  inclusive  of  prior  in- 
cumbrances shall  not  exceed  40%  of  the  value 
of  such  real  estate,  if  unimproved,  and  if  it  is 
improved,  60%  of  its  value.  The  improve- 
ments shall  be  kept  adequately  insured. 

Sec.  9757.  A Commercial  Bk.  also  may  loan 
money  on  personal  security,  discount,  buy,  sell 
or  assign  promissory  notes,  drafts,  bills  of 
exchange,  and  other  evidences  of  debt,  and 
buy  and  sell  exchange,  coin  and  bullion. 

Sec.  9758.  Subject  to  the  provisions  of  the 
preceding  Sec.  Commercial  Bks.  may  invest 
their  capital,  surplus  and  deposits  in,  or  loan 
them  upon ; 

a.  Personal  or  collateral  securities. 

b.  Bonds  or  other  interest-bearing  obliga- 
tions of  the  U.  S.,  or  those  for  which  the 
faith  of  the  U.  S.  is  pledged  to  provide  pay- 


Commercial  Banks, 


OHIO. 


ment  of  the  interest  and  principal,  including 
bonds  of  the  Dist.  of  Col.;  also  in  bonds  or 
other  interest-bearing  obligations  of  any  for- 
eign government. 

c.  Bonds  of  interest-bearing  obligations  of 
this  or  any  other  state  of  the  U.  S. 

d.  The  legally  issued  bonds  . or  interest- 
bearing  obligations  of  any  city,  village,  county, 
township,  Sch.  Dist.  or  other  Dist.,  or  political 
Subdiv.  of  this  or  any  other  state  or  territory 
of  the  U.  S.  and  of  Canada. 

e.  Mtg.  bonds  or  collateral  Tr.  bonds  of 
any  regularly  incorporated  Co.,*  which  has 
paid,  for  at  least  4 yrs;,  dividends  at  the  rate 
of  at  least  4%  on  their  capital  stock.  Such 
loan  shall  not  exceed  80%  of  the  market  or 
actual  value  of  such  bonds,  the  purchase  of 
which  first  has  been  authorized  by  the  direc- 
tors. All  such  securities  having  a fixed  matu- 
rity shall  be  charged  and  entered  upon  the 
books  of  the  Bk.  at  their  cost  to  the  Bk.,  or 
at  par,  when  a premium  is  paid,  and  the  Supt. 
of  Bks.  shall  have  the  power  to  require  any 
security  to  be  charged  down  to  such  sum  as 
in  his  judgment  represents  its  value.  The 
Supt.  of  Bks.  may  order  that  any  such  secu- 
rities which  he  deems  undesirable  be  sold 
within  6 mos. 

/.  Notes  secured  by  Mtg.  on  real  estate, 
where  the  amount  loaned  thereon  inclusive  of 
prior  incumbrances  does  not  exceed  40%  of 
the  value  of  the  real  estate  if  unimproved, 
and  if  improved  60%  of  its  value,  including 
improvements,  which  shall  be  kept  adequately 
insured.  Not  more  than  50%  of  the  amount 
of  the  paid-in  capital,  surplus  and  deposits  of 
such  Bk.  at  any  time  shall  be  invested  in  such 
real  estate  securities. 

Sec.  9760.  When  the  reserve  of  a Com- 
mercial .Bk.  falls  below  the  amount  required 
* * * , it  shall  not  make  new  loans  or  dis- 
counts, otherwise  than  by  discounting  or  pur- 

* The  Department  of  Banks  and  Banking  holds  that 
inasmuch  as  the  banking  law  does  not  mention  " rail- 
road ” corporations  specifically  that  they  are  included 
in  the  general  use  of  the  word  “ corporations.” 

9 


OHIO. 


Commercial  Banks. 


chasing  bills  of  exchange,  payable  at  sight 
or  on  demand,  nor  make  dividends  of  its 
profits,  until  the  reserve  required  by  law  is 
restored.  * * * 

Sec.  9761.  No  Commercial  Bk.,  Sav.  Bk., 
Safe  Dep.  Co.  or  Tr.  Co.  shall  loan  money 
on  the  security  or  pledge  of  the  shares  of  its 
capital  stock;  nor  be  the  purchaser  or  holder 
of  any  such  shares,  unless  such  security  or 
purchase  be  necessary  to  prevent  loss  upon  a 
debt  previously  contracted  in  good  faith. 
Stock  so  acquired,  shall  within  6 mos.  from 
the  time  of  its  purchase,  be  sold  or  disposed 
of  at  public  sale  on  30  days*  notice  from 
the  Supt.  of  Bks.,  * * *. 

See  also  Secs.  9729,  9744,  9790,  under 
Sav.  Bks. 


10 


Savings  Banks  without  Capital  Stock.  PENNSYLV  ANIA. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green . brozvn. 

Other  matter  in  black . 

PENNSYLVANIA. 


SAVINGS  BANKS  WITHOUT  CAPITAL  STOCK. 

(20  May,  1889,  § 6,  P.  L.  246.) 

10.  It  shall  be  lawful  for  any  as- 
sociation incorporated  under  this  act 
to  purchase,  hold  and  convey  real  es- 
tate as  follows: 

1.  Such  as  shall  be  necessary  for 
its  immediate  accommodation  in  the 
transaction  of  its  business. 

2.  Such  as  shall  be  mortgaged  to 
it  in  good  faith  as  security  for  debts 
contracted  previous  to  the  execution 
of  any  such  mortgage. 

3.  Such  as  it  shall  purchase  at 
sales  under  judgments,  decrees  or 
mortgages  held  by  such  corporation, 
or  shall  purchase  to  secure  debts  due 
to  said  corporation. 

(20  May,  1899,  § 17,  P.  L.  246.) 

28.  It  shall  be  lawful  for  the  trus- 
tees of  any  savings  bank  to  invest 
money  deposited  therein  only  as  fol- 
lows: 

1st.  In  the  stocks  or  bonds  of 
interest-bearing  notes,  or  the  obliga- 
tions of  the  United  States,  or  those 
for  which  the  faith  of  the  United 
States  is  pledged,  to  provide  for  the 
payment  of  the  interest  and  the  prin- 
cipal. 

2d.  In  the  stocks  or  bonds  of  the 
Commonwealth  of  Pennsylvania  bear- 
ing interest. 


PENNSYLVANIA,  Savings  Banks  without  Capital  Stock. 

3d.  In  the  stocks  or  bonds  of  any 
State  in  the  Union  that  has  not,  with- 
in ten  years  previous  to  making  such 
investment  by  such  corporation,  de- 
faulted in  the  payment  of  any  part  of 
either  principal  or  interest  of  any  debt 
authorized  by  any  legislature  of  such 
State  to  be  contracted. 

4th.  In  the  stocks  or  bonds  of  any 
city,  county,  town  or  village,  of  any 
State  of  the  United  States,  issued  pur- 
suant to  the  authority  of  any  law  of 
the  State,  or  in  any  interest-bearing 
obligations  issued  by  the  city  or 
county  in  which  such  bank  shall  be„ 
situated. 

5th.  In  bonds  or  mortgages  or  un- 
incumbered improved  real  estate  sit- 
uate in  this  State. 

31.  It  shall  not  be  lawful  for  the 
trustees  of  any  savings  bank  or  insti- 
tution incorporated  under  this  act  to 
loan  the  money  deposited  with  them, 
or  any  part  thereof,  upon  notes,  bills 
of  exchange  or  drafts,  or  to  discount 
any  such  notes,  bills  of  exchange  or 
drafts. 

32.  And  in  all  cases  of  loans  upon 
real  estate  a sufficient  bond  secured 
by  a mortgage  thereon,  shall  be  re- 
quired of  the  borrower,  and  all  the  ex- 
penses of  searches,  examinations,  cer- 
tificates of  title  or  appraisal  of  value 
and  of  drawing,  perfecting  and  re- 
cording papers  shall  be  paid  by  such 
borrower. 

33.  Whenever  buildings  are  in- 
cluded in  the  valuation  of  any  real 


Banks  of  Discount  and  Deposit.  PENNSYLVANIA, 


estate  upon  which  a loan  shall  be  made  by 
any  such  Corp.,  they  shall  be  insured  by 
the  mortgagor  in  such  Co.  or  Cos.  as  the 
trustees  shall  direct,  and  the  policy  of  Ins. 
shall  be  duly  assigned  or  the  loss  made 
payable  as  its  interest  may  appear  to  such 
Corp.,  and  it  shall  be  lawful  for  such  Corp. 
to  renew  such  policy  of  Ins.  from  year  to 
year,  or  for  a longer  or  shorter  time,  in 
case  the  mortgagor  shall  neglect  to  do  so, 
and  may  charge  the  amount  paid  to  the 
mortgagor.  And  all  the  necessary  charges 
and  expenses  paid  by  such  Corp.  for  such 
renewal  or  renewals  shall  be  paid  by  such 
mortgagor  to  such  Corp.,  and  shall  be  a 
lien  upon  the  property  so  mortgaged, 
recoverable  with  interest,  from  the  time 
of  payment  as  part  of  the  money  secured 
to  be  paid  by  such  Mtg. 

34.  It  shall  be  unlawful  for  any  Corp. 
incorporated  under  this  act,  directly  or 
indirectly,  to  deal  or  trade  in  real  estate, 
or  in  any  goods,  wares,  merchandise  or 
commodities  whatever,  except  as  authorized 
by  this  act,  and  except  such  personal  prop- 
erty as  may  be  necessary  in  the  transaction 
oj  its  business. 

BANKS  OF  DISCOUNT  AND  DEPOSIT. 

Sec.  8.  That  it  shall  be  lawful  for  any 
association  incorporated  under  this  act  to 
purchase,  hold  and  convey  real  estate  as 
follows : 

1st.  Such  as  shall  be  necessary  for  its 
immediate  accommodation  in  the  transac- 
tion of  its  business. 

2d.  Such  as  shall  be  mortgaged  to  it 
in  good  faith  as  security  for  debts. 


PENNSYLVANIA.  Banks  of  Discount  and  Deposit. 

3d.  Such  as  it  shall  purchase  at  sales 
under  judgments,  decrees  or  Mtgs.  held 
by  such  Corp.,  or  shall  purchase  to  secure 
debts  due  to  said  Corp. 

Such  Corp.  shall  not  purchase  or  hold 
real  estate  in  any  other  case  or  for  any 
other  purpose  than  as  specified  in  this  Sec., 
nor  shall  it  in  any  case  hold  the  possession 
of  any  real  estate  under  Mtg.,  or  the  title 
and  possession  of  any  real  estate  under 
Mtg.,  or  the  title  and  possession  of  any 
real  estate  purchased  by  it,  except  such  as 
may  be  necessary  for  its  immediate  accom- 
modation in  the  transaction  of  its  business, 
for  a longer  period  than  5 yrs.  (This  clause 
was  amended  June  10,  1911,  as  follows:) 

“Sec.  1.  Be  it  enacted,  etc.,  that  the  time 
during  which  all  Corps,  are  authorized  by 
law  and  their  charters  to  hold  and  convey 
real  estate,  acquired  by  them  under  execu- 
tion or  in  satisfaction  of  debts,  be  and  the 
same  is  hereby  extended  to  all  property  here- 
tofore bought  and  now  held  by  such  Corps., 
for  and  during  a further  period  of  5 yrs. 
from  and  after  the  expiration  of  the  time 
during  which,  as  aforesaid,  they  are  now  so 
authorized  to  hold  and  convey  the  same/’ 
— be  and  the  same  are  hereby  revived, 
continued,  and  extended,  in  so  far  as  they 
relate  to  banking  Cos.,  for  a period  of  5 
yrs.  from  and  after  the  passage  of  this  act: 
Provided,  however,  that  nothing  in  this 
act  shall  apply  to  R.  R.  right  of  ways. 

Sec.  1.  Be  it  enacted,  etc.,  that  Bks. 
chartered  under  the  provisions  of  the 
laws  of  * * * Penn,  be  and  they  are 
hereby  authorized  to  loan  money  on  the 
security  of  bonds  and  Mtgs.,  on  unincum- 
bered real  estate  situated  in  this  state, 


4 


Banka,  Trust  Companies,  etc. 


PENNSYLVANIA. 


not  in  excess  of  their  time  deposits, 
and  to  invest  their  funds,  not  exceed- 
ing twenty-five  per  centum  of  their 
capital  stock,  surplus  and  undivided 
profits,  in  the  purchase  of  such  mort- 
gages ; and  may  also  purchase,  for 
investment,  any  interest-bearing  bonds 
or  other  obligations  of  any  corpora- 
tion or  individual. 

Approved  July  10,  1901. 


BANKS,  TRUST  COMPANIES,  AND  SAVINGS  IN- 
STITUTIONS, WITH  CAPITAL  STOCK. 

Section  i.  Be  it  enacted,  etc.,  that 
no  director  of  any  banking  institution, 
trust  company,  or  savings  institution, 
having  capital  stock,  heretofore  or 
hereafter  incorporated  in  this  com- 
monwealth, shall  receive  as  a loan  an 
amount  greater  than  ten  per  centum 
of  the  capital  stock  actually  paid  in, 
and  surplus;  and  the  gross  amount 
loaned  to  all  officers  and  directors  of 
such  corporations,  and  to  the  firms  or 
houses  in  which  they  may  be  inter- 
ested directly  or  indirectly,  shall  not 
exceed  at  any  time  the  sum  of  twenty- 
five  per  centum  of  the  capital  stock 
paid  in,  and  surplus. 

Section  2.  That  no  corporation 
under  this  act  shall  take  as  security 
for  any  loan  or  discount,  a lien  on 
any  part  of  its  capital  stock;  but  the 
same  surety,  both  in  kind  and  amount, 
shall  be  required  of  persons,  share- 
holders and  not  shareholders ; and  no 
such  corporation  shall  be  the  holder 
or  purchaser  of  any  of  its  capital,  un- 


o 


PENNSYLVANIA. 


Banks,  Trust  Companies,  etc. 


less  such  purchase  shall  be  necessary 
to  prevent  loss  on  a debt  previously 
contracted  in  good  faith,  on  surety 
which  at  the  time  was  deemed  ade- 
quate for  the  payment  of  such  debt, 
without  a lien  upon  such  stock,  or  in 
case  of  forfeiture  of  such  stock  for 
the  non-payment  of  installments  due 
thereon.  . . . 

Approved  June  14,  1901. 


V, 


( 


I 


Savings  Banks. 


RHODE  ISLAND. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  brown. 

Other  matter  in  black. 

RHODE  ISLAND. 

Corrected  to  and  including  January,  1912,  Session. 

SAVINGS  BANKS. 

Chap.  237,  Gen.  Laws,  1909. 

Sec.  10.  Any  deposit  in  a Sav.  Bk.  or  the 
Sav.  Dept,  of  a bank  or  Tr.  Co.  may  be 
pledged  by  delivery  of  the  pass-book  evidenc- 
ing such  deposit  to  the  pledgee,  with  an  order 
for  its  transfer;  but  no  such  pledge  shall  be 
effective  to  secure  such  deposit  against  any 
person  other  than  the  pledgor,  his  executor 
or  administrator,  unless  an  actual  transfer 
of  said  deposit  shall  have  been . made  upon 
the  books  of  the  Sav.  Bk.,  or  said  order  for 
such  transfer  shall  have  been  disclosed  to, 
and  a copy  filed  with,  the  Sav.  Bk.  holding 
such  deposit. 

Chap.  687,  Pub.  Laws,  1911. 

Sec.  1.  All  deposits  in  Sav.  Bks.  and  in  the 
Sav.  or  participation  Dept’s.  of,  or  received 
as  savings  deposits  or  on  participation  by 
Bks.  and  Tr.  Co’s.,  and  in  the  case  of  Sav. 
Bks.  the  income  derived  from  investments 
held,  hereafter  received  shall  be  invested  only 
as  follows : 

Clause  I.  (a)  In  the  bonds  or  notes  of  the 
U.  S.  or  of  any  state  or  territory  of  the  U.  S. 
provided  that  such  state  or  territory  has  not, 
in  the  10  yrs.  next  preceding  the  time  of 
such  investment,  repudiated  its  debt  or  failed 
to  pay  the  same,  or  the  interest  due  thereon 
or  upon  any  part  of  such  debt. 

(b)  In  the  bonds  or  notes  of  any  city  or 
town  of  the  New  Eng.  States  or  of  the  State 
of  N.  Y.,  which  has  not  defaulted  upon  any 
of  its  bonds  or  notes  during  the  10  yrs.  next 
preceding  such  investment,  whose  net  debt 
does  not  exceed  7%  of  the  last  preceding 
valuation  of  the  property  therein  for  the 
assessment  of  taxes;  or  of  any  incorporated 
Dist.  of  said  states  which  has  within  its 
limits  more  than  5,000  inhabitants,  and  whose 


RHODE  ISLAND.  Savings  Banks. 

bonds  or  notes  are  a direct  obligation  on  all 
the  taxable  property  of  such  Dist.,  and  whose 
net  debt  does  not  exceed  5%  of  such  valua- 
tion, and  which  bonds  are  provided  for  by  a 
sinking  fund  or  serial  retirement;  or  of  any 
incorporated  Dist.  within  this  state  which 
has  within  its  limits  more  than  2,500  inhabi- 
tants and  whose  net  debt  does  not  exceed  5% 
of  such  valuation,  and  which  bonds  are  pro- 
vided for  by  a sinking  fund  or  serial  retire- 
ment. 

(c)  In  the  bonds  or  notes  of  any  city  of 
any  of  the  U.  S.  other  than  the  New  Eng. 
States,  and  the  State  of  N.  Y.,  which  has  not 
defaulted  upon  any  of  its  bonds  or  notes 
during  the  10  yrs.  next  preceding  such  in- 
vestment, and  which  has  30,000  or  more  in- 
habitants, as  established  by  the  last  national 
or  state  census,  or  city  census  certified  to  by 
the  clerk  or  treasurer  of  such  city,  and  taken 
in  the  same  manner  as  a national  or  state  cen- 
sus, preceding  such  investment,  and  whose 
net  debt  does  not  exceed  7%  of  the  valua- 
tion of  the  taxable  property  therein,  as  fixed 
by  the  last  preceding  valuation  of  property 
therein  for  the  assessment  of  taxes,  or  in 
the  bonds  and  obligations  of  any  incorpo- 
rated Sch.  Dist.  within  any  such  city,  which 
have  been  issued  by  the  legally  constituted 
authorities  empowered  to  issue  such  bonds 
and  obligations,  payable  primarily  from  taxes 
levied  on  all  taxable  property  in  such  Dist. 
Provided,  that  the  population  of  such  Dist. 
is  30,000  or  more,  and  the  population  and 
assessed  valuation  of  the  Dist.  are  equal  to 
at  least  75%  of  the  population  and  assessed 
valuation  of  the  city  within  which  such  Dist. 
is  located:  And,  provided,  further,  that  the 
net  municipal  debt  of  such  city  is  not  in  ex- 
cess of  the  limit  hereinbefore  set.* 

(d)  In  the  bonds  or  notes  of  any  county 
of  any  state  of  the  U.  S.,  which  has  at  the 
date  of  such  investment  more  than  100,000 
inhabitants,  as  established  by  the  last  national 


* It  is  ruled  that  the  7%  limit  of  municipal 
debt  is  inclusive  of  Sch.  Dist.  debt. 


2 


Savings  Banks. 


RHODE  ISLAND 


or  state  census,  preceding  such  investment, 
and  whose  net  debt  does  not  exceed  3%  of 
the  valuation  of  the  taxable  property  therein, 
as  fixed  by  the  last  preceding  valuation  of 
property  therein  for  the  assessment  of  taxes. 

(e)  The  term  “ net  debt”  shall  mean  the 
debt  of  a city,  town,  county,  or  Dist.,  after 
deducting  from  the  total  debt  the  amount  of 
the  sinking  funds  available  for  the  payment  of 
such  debt,  the  net  outstanding  water  and  sewer 
debts,  and  the  tax  levy  for  the  current  year,  in 
computing  the  limit  of  debt  of  such  city,  town, 
county  or  Dist. 

Clause  II.  In  the  bonds  and  notes  and 
receivers'  certificate  of  steam  R.  R.  corpora- 
tions described  herein  below,  in  the  “ table  of 
eligible  steam  R,  R.  bonds  and  notes,”  sub- 
sections (a)  to  (y)  inclusive,  subject  to  the 
following  definitions  and  classification: 

The  words  “ railroad  ” and  “ railway  ” are 
to  be  considered  synonymous  titles. 

The  term,  “ funded  debt”  herein  used  shall 
include  all  bonds  and  notes  bearing  interest. 

All  “ income  bonds  ” are  ineligible. 

The  eligibility  of  such  bonds  for  such  in- 
vestment is  defined  as  follows,  unless  herein- 
after otherwise  provided  : 

Such  R.  R.  Corp.  shall  own  its  road  in  fee. 

The  R.  R.  of  such  Corp.  shall  be  located 
principally  in  the  U.  S. 

The  R.  R.  of  such  Corp.  shall  be  of  stan- 
dard gauge. 

Such  R.  R.  must  be  not  less  than  100  miles 
in  length,  exclusive  of  sidings. 

The  net  income  of  any  such  Corp.  shall  be 
its  earnings  and  income  after  payment  of  all 
operating  expenses,  maintenance  charges, 
rentals,  and  taxes,  and  all  guaranteed  divi- 
dends and  guaranteed  interest  paid  by,  or  due 
from,  it. 

The  net  earnings  and  income  of  any  such 
corporation  shall  equal  the  following  require- 
ments by  the  following  classes,  to  which  ref- 
erence is  made  in  the  succeeding  table  of 
bonds. 

Class  I.  Any  such  corporation  of  this  class 
must  have  earned  and  received  in  each  of  its 


3 


RHODE  ISLAND. 


Savings  Banks. 


3 fiscal  yrs.,  or  3 nearer  and  successive 
periods  of  1 yr.,  next  preceding  such  invest- 
ment, a net  income  of  not  less  than  twice 
the  annual  interest  for  the  ^current  year  on 
all  its  funded  debt,  including  the  bonds  in 
question. 

Class  II.  Any  such  corporation  of  this 
class  must  have  earned  and  received  a net 
income,  in  each  of  its  3 fiscal  yrs.,  or  3 nearer 
and  successive  periods  of  1 yr.,  next  preced- 
ing such  investment,  not  less  than  twice  the 
annual  interest  for  the  ^current  year  on  the 
underlying  mortgage  bonds  in  question  and  all 
prior  liens. 

Class  III.  Any  such  corporation  of  this 
class  must  have  earned  and  received  in  each 
of  its  3 fiscal  years,  or  3 nearer  and  succes- 
sive periods  of  1 year,  next  preceding  such 
investment,  a net  income  of  not  less  than 
twice  the  annual  interest  for  the  ^current  year 
on  all  its  mortgage  debt  outstanding,  includ- 
ing the  bonds  in  question. 

Class  IV.  Any  such  corporation  of  this 
class  must  have  earned  and  received  in  each 
of  its  3 fiscal  yrs.,  or  3 nearer  and  successive 
periods  of  1 yr.,  next  preceding  such  invest- 
ment, a net  income  of  not  less  than  ij4  times 
the  annual  interest  for  the  ^current  year  on 
all  its  funded  debt,  including  the  bonds  in 
question. 

(a)  Debenture  bonds  of  any  such  steam 
R.  R.  Corp.,  incorporated  in  any  of  the  U.  S., 
whose  net  income  is  described  in  Class  I. 

(b)  Debenture  bonds  of  any  such  steam 
R.  R.  Corp.,  incorporated  in  any  of  the  U.  S., 
which  has  leased  its  R.  R.  to  another  such 
R.  R.  whose  net  income  is  described  in  Class 
I : Provided,  that  such  lease  is  for  a term  ex- 
tending at  least  10  yrs.  after  the  maturity 
of  the  bonds  in  question,  and  that  the  rent 
from  such  lease  is  sufficient  to  meet  the  in- 
terest, and  sinking  fund  requirements  if  any, 
on  said  bonds  or  any  prior  lien  or  any  other 
debenture  bonds,  together  with  a dividend 
of  not  less  than  4%  per  annum  on  the  entire 


* “ Current  year  ” means  the  year  now  passing. 


4 


Savings  Banks. 


RHODE  ISLAND 


capital  stock  of  the  lessor  Corp.,  and  also 
provides  for  the  proper  maintenance  and 
operation  of  the  property  leased. 

(c)  Debenture  bonds  of  any  such  steam 
R.  R.  Corp.,  incorporated  in  any  of  the  U.  S., 
guaranteed  as  to  principal  and  interest,  or  as- 
sumed by  another  R.  R.  described  in  Class  I. 

(d)  Bonds  of  any  such  steam  R.  R.  Corp. 
described  in  items  (b)  and  (c),  which  are 
guaranteed  as  to  principal  and  interest,  or 
assumed  by  2 or  more  steam  R.  Rds.  of  which 
r shall  be  of  Class  I,  and  the  others  may  be 
of  Class  III  or  Class  IV. 

(e)  Mtg.  bonds  of  any  such  steam  R.  R. 
Corp.  incorporated  in  any  of  the  U.  S.,  whose 
net  income  is  not  less  than  that  described  in 
Class  III. 

(f)  Underlying  Mtg.  bonds  of  any  such 
steam  R.  R.  Corp.  incorporated  in  any  of  the 
U.  S.,  whose  net  income  is  not  less  than  that 
described  in  Class  II. 

(g)  Mtg.  bonds  of  any  such  steam  R.  R. 
Corp.,  incorporated  in  any  of  the  U.  S.,  which 
are  guaranteed  as  to  principal  and  interest, 
or  assumed,  by  another  steam  R.  R.  whose 
net  income  is  described  in  Class  I or  Class 
III. 

(h)  Mtg.  bonds  of  any  such  steam  R.  R. 
Corp.,  incorporated  in  any  of  the  U.  S.,  which 
are  guaranteed  as  to  principal  and  interest, 
or  assumed,  by  2 or  more  steam  R.  Rds., 
of  which  at  least  1 shall  be  of  Class  I or 
Class  III  and  the  others  may  be  of  Class  III 
or  Class  IV. 

(i)  Mtg.  bonds  of  any  such  steam  R.  R. 
Corp.,  incorporated  in  any  of  the  U.  S.,  which 
has  leased  its  R.  R.  to  another  steam  R.  R. 
whose  net  income  is  described  in  Class  I 
or  Class  III : Provided,  that  said  lease  is  for 
a term  extending  at  least  10  yrs.  after  the 
maturity  of  the  bonds  in  question,  and  that 
the  rent  ’from  such  lease  is  sufficient  to  meet 
the  interest,  and  sinking  fund  requirements 
if  any,  on  said  bonds  and  any  prior  liens,  to- 
gether with  a dividend  of  not  less  than  4% 
on  the  entire  capital  stock  of  the  lessor  Corp., 


5 


RHODE  ISLAND.  Savings  Banks. 


and  provides  for  the  proper  maintenance  and 
operation  of  the  property  leased. 

(j)  Mtg.  bonds  of  any  such  steam  R.  R. 
Corp.,  incorporated  in  the  U.  S.,  which  has 
leased  its  R.  R.  to  2 or  more  steam  R.  Rds., 
of  which  at  least  one  shall  be  of  Class  I or 
Class  III : Provided,  that  said  lease  shall  be 
for  a term  extending  at  least  io  yrs.  after 
the  maturity  of  the  bonds  in  question,  and 
that  the  rent  from  such  lease  is  sufficient  to 
meet  the  interest,  and  sinking  fund  require- 
ments if  any,  on  said  bonds  and  any  prior 
liens,  together  with  a dividend  of  not  less 
than  4%  on  the  entire  capital  stock  of  the 
lessor  Corp.,  and  provides  for  the  proper 
maintenance  and  operation  of  the  property 
leased. ' 

(k)  1st  Mtg.  bonds  or  refunding  Mtg. 
bonds  of  any  such  steam  R.  R.  Corp.,  which 
would  be  a legal  investment  under  items 
(g),  (h),  (i),  and  (j),  respectively,  except  for 
the  fact  that  it  owns  in  fee  less  than  ioo 
miles  of  road,  exclusive  of  sidings. 

(l)  ist  Mtg.  bonds  of  any  such  steam 
R.  R.  Corp.,  irrespective  of  mileage,  which  is 
a constituent  part  of  a steam  R.  R.  and  trans- 
portation system  of  not  less  than  i,ooo  miles 
of  road,  exclusive  of  sidings,  and  at  least 
90%  of  the  capital  stock  of  which  is  owned 
by  a proprietary  Holding  Co.  which  operates 
said  R.  R.  and  transportation  system,  and 
the  earnings  of  which,  with  the  earnings  of 
the  other  divisions  constituting  said  R.  R. 
and  transportation  system,  are  received  by 
said  Plolding  Co.,  and  which  bonds  in  ques- 
tion are  fully  guaranteed  as  to  principal  and 
interest  by  such  Holding  Co.,  either  by  di- 
rect guarantee,  or  by  rental  under  lease  ex- 
tending at  least  io  yrs.  after  the  maturity 
of  said  bonds,  the  terms  of  which  lease  re- 
quire a payment  of  rent  equivalent  to  all 
taxes  and  interest,  and  provides  a sinking 
fund  sufficient  to  retire  said  bonds  at  ma- 
turity : Provided,  however,  that  the  net  in- 
come of  said  Holding  Co.  shall  equal  the 
requirements  of  R.  Rds.  in  Class  I. 

(m)  Bonds  and  debentures  of  any  steam 

6 


Savings  Banks. 


RHODE  ISLAND. 


R.  R.  Corp.,  whose  R.  R.  property  is  unin- 
cumbered bv  Mtg.,  and  whose  net  income  is 
described  in  Class  I : Provided,  however,  that 
such  bonds  or  debentures  shall  be  issued  only 
under  the  authority  of  some  state  which  pro- 
vides by  law  that  no  such  R.  R.  Corp.  which 
has  issued  bonds  shall  subsequently  execute 
a Mtg.  upon  its  R.  R.  property  without  in- 
cluding in  and  securing  by  such  Mtg.  all 
bonds  previously  issued  by  it  and  all  its  pre- 
existing debts  and  liabilities,  which  provision 
so  enacted  in  such  state  shall  have  been  ac- 
cepted by  the  stockholders  of  such  R.  R.  Co. 

(n)  Bonds  of  any  steam  R.  R.  Corp.,  de- 
scribed in  item  (m)  which  has  leased  its 
R.  R.  to  another  steam  R.  R.  for  a term  ex- 
tending not  less  than  io  yrs.  after  the  ma- 
turity of  the  bonds  in  question,  which  lessee 
R.  R.  fully  guarantees  the  principal  and  in- 
terest on  said  bonds : Provided,  that  said 
lessee  R.  R.  is  one  whose  net  income  is  at 
least  up  to  the  standard  set  in  Class  III ; 
and  provided,  further,  that  said  lease  is  for 
a term  extending  at  least  io  yrs.  after  the 
maturity  of  the  bonds  in  question,  and  that 
the  rent  from  such  lease  is  sufficient  to  meet 
the  interest  and  sinking  fund  requirements, 
if  any,  on  said  bonds,  together  with  a divi- 
dend of  not  less  than  4%  per  annum  on  the 
entire  capital  stock  of  the  lessor  Corp.,  and 
provides  for  the  proper  maintenance  and  op- 
eration of  the  property  leased. 

(o)  1st  Mtg.  bonds  of  any  Terminal  Co., 

or  Terminal  Rwy.  Co.  incorporated  in  the 

U.  S.,  whose  property  is  located  in  the  U.  S., 

and  whose  bonds  are  guaranteed  as  to 
principal  and  interest  by  any  such  steam  R.  R. 
Corp.  of  Class  I. 

(p)  1st  Mtg.  Bonds  of  any  Terminal  Co., 

or  Terminal  Rwy.  Co.,  incorporated  in  the 

U.  S.,  whose  property  is  located  in  the  U.  S., 

whose  bonds  are  guaranteed  as  to  principal 
and  interest  by  2 or  more  steam  R.  R.  Corps., 
of  Class  I or  Class  III. 

(q)  1st  Mtg.  bonds  of  any  Terminal  Co., 

or  Terminal  Rwy.  Co.,  incorporated  in  the 

U.  S.,  whose  property  is  located  in  the  U.  S.. 


7 


RHODE  ISLAND. 


Savings  Banks. 


of  which  Co.  at  least  90%  of  its  capital  stock 
is  owned  by  2 or  more  proprietary  steam 
R.  Rds.  of  Classes  I,  III,  or  IV,  and  which 
use  said  property,  and  jointly,  or  jointly  and 
severally,  guarantee  the  principal  and  interest 
of  all  the  debt  of  said  Co. 

(r)  1st  Mtg.  bonds  of  any  Terminal  Co., 
or  Terminal  Rwy.  Co.,  inc.  in  the  U.  S., 
whose  property  is  located  in  the  U.  S.,  which 
has  leased  its  property  to  1 or  more  steam 
R.  R.  Corps.,  which  guarantee  the  principal 
and  interest  on  said  bonds,  and  which  lease 
runs  for  a term  extending  at  least  10  yrs. 
after  the  maturity  of  said  bonds,  and  which 
lease  provides  for  the  maintenance  and  opera- 
tion of  the  leased  property : Provided,  that, 
if  such  lease  is  to  1 steam  R.  R.  Corp.,  it 
shall  be  of  Class  I,  and  if  such  lease  is  to 
2 steam  R.  R.  Corps.,  they  may  be  of  Classes 
I,  or  III ; and  if  such  lease  is  to  3 or  more 
steam  R.  R.  Corps.,  they  may  be  of  Classes 
I,  III  or  IV. 

(s)  1st  Mtg.  bridge  bonds  issued  by  any 
R.  R.  Corp.  of  Class  I. 

(t)  1st  Mtg.  bonds  of  any  Bridge  Co.,  in- 
corporated in  the  U.  S.,  whose  property  is  in 
the  U.  S.,  whose  entire  debt  is  guaranteed  as 
to  principal  and  interest  by  1 or  more  steam 
R.  R.  Corps. : Provided,  that,  if  such  guaran- 
tee is  by  one  such  R.  R.  Corp.,  it  shall  be  of 
Class  I,  and  if  such  guarantee  is  by  2 or 
more  R.  R.  Corps,  they  may  be  Classes  I,  III, 
or  IV. 

(u)  1st  Mtg.  bonds  of  any  Bridge  Co.,  in- 
corporated in  the  U.  S.,  whose  property  is 
in  the  U.  S.  and  whose  capital  stock  is  en- 
tirely owned,  except  shares  qualifying  direct- 
ors, by  2 or  more  proprietary  steam  R.  R. 
Corps,  of  Classes  I,  III,  or  IV,  which  guar- 
antee the  maintenance  of  the  property  and 
the  principal  and  interest  of  such  bonds. 

(v)  Equipment  bonds,  or  equipment  notes, 
issued  by  any  steam  R.  R.  Corp.  of  Class  I, 
Class  III,  or  Class  IV,  which  are  secured  by 
a 1st  lien  on  the  equipment  against  the  pur- 
chase of  which  said  bonds  or  notes  were  is- 
sued at  not  exceeding  80%  of  the  purchase 


3 


Savings  Banks. 


RHODE  ISLAND. 


price  thereof : Provided,  that  the  indenture 
under  which  said  lien  is  established  contains 
adequate  requirements  for  the  maintenance  of 
the  property  pledged,  and  provides  that  an 
equal  amount  of  any  issue  of  such  bonds,  or 
notes,  shall  be  paid  annually  until  all  are 
retired  without  the  release  of  the  lien  on  any 
of  such  equipment. 

(w)  Notes,  warrants,  and  obligations,  run- 
ning for  a term  of  not  more  than  5 years 
from  date  of  issue,  given  by  any  steam  R,  R. 
Corp.,  which  has  earned  and  paid  dividends 
at  the  rate  of  not  less  than  4%  per  annum 
on  all  its  outstanding  capital  stock  for  5 yrs. 
next  prior  to  the  date  of  issue. 

(x)  Certificates  of  indebtedness  commonly 
termed  “ receivers’  certificates,”  issued  by  a 
receiver  of  any  such  steam  R.  R.  under  an 
authorization  of  the  court  or  courts  having 
jurisdiction  over  such  receiver. 

(y)  1st  Mtg.  bonds  and  refunding  Mtg. 
bonds  of  any  steam  R.  R.,  incorporated,  and 
whose  property  is  principally  located  in  the 
Dom.  of  Canada,  which  conform  in  all  re- 
spects to  the  provisions  applying  to  Mtg.  bonds 
of  steam  R.  R.  Corps,  in  the  U.  S. 

Clause  III.  The  change  of  motive  power 
by  any  steam  R.  R.  Corp.,  whether  wholly 
or  in  part,  shall  not  affect  the  eligibility, 
for  such  investment,  of  any  of  the  steam 
R.  R.  obligations  hereinbefore  described,  so 
long  as  its  earnings  conform  with  the  fore- 
going requirements. 

Clause  IV.  (a)  In  the  shares  of  the  capi- 
tal stock  of  any  steam  R.  R.  which  has 
leased  its  R.  R.  to  another  steam  R.  R., 
which  operates  the  property  so  leased  as  a 
part  of  its  R.  R.  system : Provided,  that  such 
lease  is  for  a term  of  not  less  than  50  yrs., 
and  the  lessee  Co.  is  one  whose  bonds  would 
be  a legal  investment  under  the  provisions 
of  Clause  II,  Class  III,  and  that  by  the  terms 
of  the  lease,  the  lessee  Co.  is  obliged  to  pay 
rents  sufficient  to  pay  the  interest  on  the 
outstanding  bonds  of  the  lessor,  and  a divi- 
dend at  an  annual  rate  of  not  less  than 


9 


RHODE  ISLAND.  Savings  Banks. 


4%  per  annum  on  all  the  capital  stock  of 
the  lessor  Co. 

(b)  In  the  shares  of  the  capital  stock  of 
any  steam  R.  R.  which  operates  its  own  R.  R., 
whose  bonds  would  be  an  eligible  investment 
under  Clause  IX,  Class  I : Provided,  that  such 
R.  Ro  has  paid  regular  annual  dividends  on 
all  its  capital  stock,  at  the  rate  of  not  less 
than  4%  per  annum  for  io  yrs.  next  preced- 
ing such  investment. 

(c) The  aggregate  investment  of  such 
deposits  and  income  by  any  bank,  Sav.  Bk.  or 
Tr.  Co.  in  the  stock  of  any  one  such  steam 
R.  R.  Corp.  at  par  value  shall  not  exceed  2% 
of  said  deposits  held  by  it. 

Clause  V.  In  the  bonds  of  public  service 
Corps.,  commonly  called  “ public  service  se- 
curities ” described  hereinbelow  in  the  “ table 
of  eligible  public  service  securities/*  subsec- 
tions (a)  to  O'),  inclusive,  subject  to  the  fol- 
lowing description  and  definition : 

The  title  “ public  service  securities  ” shall 
include  only  Mtg.  bonds  issued  by  any  Electric 
R R « Street  Rwy.,  Gas  Co.,  Electric  Light 
or  Power  Co.,  or  Water  Co.,  as  hereinafter 
described. 

The  term  “ funded  indebtedness  ” herein 
used  shall  include  all  bonds  and  notes  bear- 
ing interest. 

Such  Corp.  shall  own  the  major  part  of  its 
property  in  fee. 

The  property  of  such  Corp.  shall  be  located 
principally  in  the  U.  S.,  unless  otherwise 
provided. 

The  net  income  of  such  Corp.  shall  be  its 
net  earnings  and  income  after  payment  of  all 
operating  expenses,  maintenance  charges,  ren- 
tals and  taxes,  and  all  guaranteed  interest 
and  guaranteed  dividends  paid  by,  or  due 
from,  it. 

Such  Corp.  must  have  earned  and  received, 
a net  income  in  each  of  its  3 fiscal  yrs.,  or 
3 nearer  periods  of  1 yr.,  next  preceding 
such  investment,  not  less  than  twice  the  an- 
nual interest  for  the  ^current  year  on  all  its 


♦ “ Current  year  ” means  year  now  passing. 


10 


Savings  Banks. 


RHODE  ISLAND. 


debt  secured  by  the  Mtg.  under  which  the 
bonds  in  question  are  issued  and  all  prior 
liens,  unless  otherwise  hereinafter  specified, 
and  shall  not  have  defaulted  on  any  of  its 
obligations  during  the  same  period : Provided, 
however,  that  said  bonds  shall  mature  at 
least  5 yrs.  before  the  expiration  of  the  prin- 
cipal franchise  or  franchises  under  which 
such  Corp.  is  operated,  or  there  shall  exist 
some  definite  agreement  or  contract  with  the 
grantors  whereby  such  franchise  or  franchises 
may  be  renewed  or  extended  from  time  to 
time  throughout  and  beyond  the  life  of  the 
bonds  in  question,  and  or  that  by  such  an 
agreement  or  contract  the  security  of  said 
bonds  is  adequately  protected  and  preserved 
to  the  bondholders,  and  a copy  of  such  agree- 
ment or  contract  shall  be  filed  in  the  office 
of  the  Bk.  Com.  and  shall  be  preserved  in  his 
files  during  the  life  of  the  bonds  in  question. 

(a)  Mtg.  bonds  of  any  such  Electric  R R., 
Street  Rwy.,  Gas,  Electric  Light  or  Power  Co., 
incorporated  under  the  laws  of  R.  I.,  whose 
property  is  located  and  operated  chiefly  in 
this  state. 

(b)  Mtg.  bonds  of  any  such  Electric  R,  R 
Street  Rwy.,  Gas,  and  Electric  Light  or  Power 
Co.,  incorporated  under  the  laws  of  any  of  the 
U.  S. : Provided,  however,  that  the  said  bonds 
of  any  such  Electric  R.  R.  or  Street  R.  R.  Co. 
shall  be  a legal  investment  for  such  deposits 
and  income  only  in  case  such  Co.  shall  have 
received  average  gross  earnings  of  not  less 
than  $400,000  in  each  of  its  3 fiscal  yrs.,  or 
3 nearer  periods  of  1 yr.  next  preceding  such 
investment,  and  if  said  bonds  are  issued  by 
a Co.,  which  carries  on  the  business  of  an 
Electric  R.  R.  or  St.  Rwy.  combined  with 
that  of  either  a Gas  Co.  or  an  Electric  Light 
or  Power  Co.,  or  both  of  such  kinds  of  busi- 
ness, then,  in  such  case,  such  Co.  shall  have 
received  average  gross  earnings  of  not  less 
than  $600,000  in  each  of  its  3 fiscal  yrs.,  or 
3 nearer  periods  of  1 yr.,  next  preceding  such 
investment : and  if  said  bonds  are  issued  by 
any  such  Gas  Co.,  or  Electric  Light  or 
Power  Co.,  or  by  a Co.  which  combines  the 

11 


RHODE  ISLAND. 


Savings  Banks. 


business  of  a Gas  Co.,  and  an  Electric  Light 
Co.,  and,  or  Power  Co.,  or  any  2 such  businesses, 
then,  in  such  case,  it  shall  have  received  aver- 
age gross  earnings  of  not  less  than  $200,000, 
in  each  of  its  3 fiscal  yrs.,  or  3 nearer  periods 
of  1 yr.,  next  preceding  such  investment. 

(c)  1st  or  refunding  Mtg.  bonds  of  any 
such  Electric  R.  R*f  St.  Rwy  , Gas,  Electric 
Light  or  Power  Co.,  inc.  in  any  of  the  U.  S., 
which  are  guaranteed  as  to  principal  and  in- 
terest or  assumed  by  another  Corp.  whose 
bonds  would  be  a legal  investment  under  the 
provisions  of  paragraph  (b)  of  this  clause. 

(d)  1st  or  refunding  Mto\  bonds  of  any 
such  Electric  R.  R.,  or  St.  Rwy.,  incorporated 
in  any  of  the  U.  S.,  which  are  guaranteed  as 
to  principal  and  interest,  or  assumed,  by  a 
Steam  R.  R.  or  R.  Rds.  whose  bonds  would 
be  a legal  investment  under  the  provisions 
of  Class  III  of  the  classification  of  Steam 
R.  Rds.  herein 

(e)  1st  or  refunding  Mtg.  bonds  of  any 
such  Electric  R.  R.,  St.  Rwy  Gas,  Electric 
Light  or  Power  Co.,  which  has  leased  its 
property  to  any  other  Corp.  whose  bonds 
would  be  a legal  investment  under  the  provi- 
sions of  paragraph  (b)  of  this  clause:  Pro- 
vided, however,  that  said  lease  shall  extend 
for  a term  of  at  least  10  years  after  the  ma- 
turity of  said  bonds,  at  a rental  at  least  equal 
to  the  fixed  charges  and  taxes  of  the  lessor, 
including  the  interest  on,  and  a sinking  fund 
for  the  bonds  in  question,  or  provides  for  the 
payment  of  said  bonds  at  maturity  and  shall 
require  the  operation  and  maintenance  of  the 
leased  property;  and  provided,  further,  that 
an  authentic  copy  of  such  lease  shall  be  filed 
in  the  office  of  the  Bank  Com.  and  such  copy 
shall  be  preserved  in  his  files  during  the  life 
of  the  bonds  in  question. 

(f)  Equipment  bonds,  or  equipment  notes, 
issued  by  any  such  Electric  R.  R.  or  St.  Rwy., 
which  are  secured  by  a 1st  lien  on  the  equip- 
ment against  the  purchase  of  which  said 
bonds  or  notes  were  issued  at  not  exceeding 
80%  of  the  purchase  price  thereof : Provided, 
the  indenture  under  which  said  lien  is  estab- 


12 


Savings  Banks.  RHODE  ISLAND. 

lished  contains  adequate  requirements  for  the 
maintenance  of  the  property  pledged,  and 
provides  that  an  equal  amount  of  such  bonds 
or  notes  shall  be  paid  annually  until  all  are 
retired,  without  the  release  of  the  lien  on 
any  of  such  equipment. 

(g)  Certificates  of  indebtedness,  commonly 
termed  “receiver’s  certificates”  issued  by  a 
receiver  of  any  such  Electric  R.  R St  Rwy., 

Gas,  Electric  Light  or  Power  Co.  under  an 
authorization  of  the  court  or  courts  having 
jurisdiction  over  such  receiver. 

(h)  ist  Mtg.  bonds  of  any  Electric  R.  R. 

St.  Rwv.,  Gas,  Electric  Light  or  Power  Co., 
described  in  paragraph  (b)  of  this  clause, 
which  is  incorporated  in  the  Dom.  of  Canada, 
and  whose  property  is  located  principally  in 
said  Dominion : Provided,  that  such  bonds 
conform  in  all  other  respects  to  the  provisions 
of  paragraph  (b),  (c),  (d),  (e),  or  (f)  of 
this  clause. 

(i)  Bonds  of  any  Corp.  which  owns  more 
than  go%  of  the  capital  stock  and  of  the  out- 
standing bonds  of  any  Electric  R,  R.  or  St. 

Rwy.  Co.,  incorporated  in  this  state,  the  Rwy. 
of  which  is  located  wholly  or  in  part  therein, 
secured  by  the  deposit  in  trust  of  the  said 
stock  and  bonds  as  collateral,  and  which  Corp. 
has  paid,  in  each  fiscal  yr.  for  the  5 yrs.  last 
preceding  such  investment,  dividends  of  not 
less  than  4%  per  annum  upon  all  its  out- 
standing capital  stock;  or  the  bonds  of  any 
such  Electric  R.  R.  or  St.  Rwy.  Co.  which 
are  secured  by  Mtg.  on  its  property  and  are 
guaranteed  as  to  principal  and  interest  by 
any  such  Corp. 

(j)  ist  Mtg.  bonds  of  any  Co.,  incorporated 
in  this  state  for  the  purpose  of  supplying 
water  for  domestic  and  other  purposes : 
Provided,  that  such  Co.  has  an  exclusive 
franchise  to  serve  a population  of  not  less 
than  10,000  in  this  state,  which  franchise  ex- 
tends at  least  5 yrs.  beyond  the  life  of  the 
bonds  in  question,  and  that  said  bonds  are 
secured  by  a Mtg.  of  the  property,  rights, 
and  franchises  of  such  Co. 

Clause  VI.  In  the  bonds  of  any  Telephone 

13 


ERODE  ISLAND.  Savings  Banks. 


Co.  incorporated  in  any  of  the  U.  S.,  whose 
property  is  located  chiefly  in  the  U.  S.  Pro- 
vided, that  such  Telephone  Co.  has  met  the 
following  requirements  during  each  of  its  5 
fiscal  yrs.  next  preceding  such  investment,  viz. : 

(a)  That  the  average  gross  income  of  such 
Telephone  Co.  shall  have  been  not  less  than 
$10,000,000  per  annum. 

(b)  That  such  Telephone  Co.  shall  have 
paid  the  matured  principal  and  interest  of  all 
its  debt. 

(c)  That  such  Telephone  Co.  shall  have 
earned  and  paid  cash  dividends  on  all  its 
outstanding  issues  of  stock  at  the  rate  of  not 
less  than  6%  per  annum,  and  that  the  amount 
of  such  cash  dividends  shall  have  exceeded 
the  sum  required  to  pay  the  interest  upon  its 
entire  outstanding  debt,  including  the  bond 
issue  in  question. 

And,  further  provided,  that  such  bonds 
shall  be  secured  either : 

(1)  By  a 1st  Mtg.  covering  at  least  75% 
of  the  property  of  such  Co.,  including  its 
franchises  and  other  similar  rights  and  privi- 
leges, and  limiting  the  amount  of  the  bonds 
issuable  thereunder  to  75%  of  the  value  of 
the  property  mortgaged,  excluding  any  valua- 
tion of  said  franchises,  rights  and  privileges, 
or 

(2)  By  the  deposit  with  a Tr.  Co.  of  bonds 
and  shares  of  stock  of  other  Telephone 
Corps.,  under  an  indenture  of  trust  which  lim- 
its the  amount  of  bonds  so  secured  to  75% 
of  the  value  of  the  securities  deposited  as 
stated  and  determined  in  said  indenture,  and 
provided  that  during  each  of  the  5 years  next 

It  preceding  such  investment  the  annual  interest 
and  dividends  paid  in  cash  on  the  securities 
deposited  have  amounted  to  not  less  than 
50%  in  excess  of  the  annual  interest  on  the 
bonds  outstanding  and  secured  by  said  deposit. 

A true  copy  of  the  Mtg.  or  indenture  of 
trust  securing  said  bonds  shall  be  filed  in  the 
office  of  the  Bk.  Com.  and  shall  be  preserved 
during  the  life  of  said  bonds. 

The  aggregate  investment  of  such  deposits 
and  income  by  any  Bk.,  Sav.  Bk.  or  Tr.  Co. 


14 


Savings  Banks.  RHODE  ISLAND. 


in  the  bonds  of  any  one  such  Telephone  Co. 
at  par  value  shall  not  exceed  2%  of  said 
deposits  held  by  it. 

Clause  VII.  In  the  capital  stock  of  any 
Bk.  or  Tr.  Co.  incorporated  under  the  laws 
of  any  of  the  New  Eng.  States,  or  the  state 
of  N.  Y.,  or  of  any  national  banking  associa- 
tion, doing  business  in  said  states ; but  such 
Corp.  shall  not  hold,  both  by  investment  and 
as  security  for  loans,  an  aggregate  of  more 
than  25%  of  such  deposits  in  the  stocks  of 
such  Corps,  at  par  value,  nor  more  than  3% 
of  such  deposits  in  the  stock  of  any  one  such 
Corp.  at  par  value,  nor  shall  such  Corp. 
hold,  both  by  investment  and  as  security  for 
loans,  more  than  J^th  of  the  capital  stock  of 
any  one  such  Bk.,  Tr.  Co.,  or  national  bank- 
ing association. 

Clause  VIII.  Not  more  than  5%  of  such 
deposits  shall  be  on  deposit  in  any  one  Bk., 
Tr.  Co.  or  National  Bk.,  and  such  deposit 
shall  not  exceed  25%  of  the  capital  stock  and 
surplus  of  such  depository,  and  if  any  part 
of  such  deposits  are  deposited  in  any  Bk.  or 
Tr.  Co.  out  of  this  state  such  depository  must 
be  eligible  to  act  as  a reserve  agent  as  de- 
fined in  Chapter  236,  Sec.  3,  of  Gen.  Laws, 
entitled  “ of  reserved 

Clause  IX.  In  loans  secured  by  1st  Mtg. 
on  real  estate  subject  to  the  following  re- 
strictions : 

No  such  loan  shall  be  made  except  upon 
the  report  of  not  less  than  2 officers,  or  trus- 
tees, or  directors,  or  agents  duly  authorized 
to  the  duty  by  the  board  of  trustees  or  di- 
rectors, who  shall  certify  according  to  their 
best  judgment  to  the  value  of  the  premises 
to  be  mortgaged.  Such  report  and  certificate 
shall  be  in  writing,  and  shall  be  filed  and  pre- 
served in  the  records  of  the  Corp. 

Loans  on  improved  real  estate  shall  not 
exceed  60%  of  such  valuation. 

Loans  on  unimproved  real  estate  shall  not 
exceed  40%  of  such  valuation. 

The  aggregate  amount  of  such  loans  shall 
not  exceed  70%  of  such  deposits,  and  of  this 


RHODE  ISLAND.  Savings  Banks. 


authorized  amount,  not  exceeding  30%  thereof 
shall  be  on  real  estate  located  out  of  R.  I. 

In  event  of  any  such  mortgage  loan  con- 
tinuing for  5 yrs.  unreduced  in  amount,  the 
property  upon  which  such  loan  is  secured,  shall 
be  re-examined  and  revalued,  and  a written 
report  and  certificate  of  the  condition  and 
value  of  the  property  at  the  time  of  such 
re-examination,  shall  be  filed  and  preserved  in 
the  records  of  the  Corp.  after  the  manner 
provided  for  a new  loan,  and  such  an  exami- 
nation and  revaluation  shall  be  made  as  often 
as  every  5th  year,  until  such  loan  is  paid. 
If  at  the  time  of  any  such  revaluation  it  shall 
appear  that  the  property  mortgaged  has  de- 
preciated in  value  so  that  the  loan  secured 
thereby  is  in  excess  of  the  percentage  limit 
of  such  value  herein  permitted  for  such  loans, 
a reduction  in  the  amount  of  the  loan  shall 
be  required  and  secured  as  promptly  as  is 
practicable  until  the  margin  of  safety  is 
restored. 

Clause  X.  (a)  In  the  note  or  notes  of  an 
individual,  copartnership,  or  Corp.,  with  a 
pledge  of  any  of  the  securities  described  in 
Clause  I,  Clause  II,  Clause  IV,  Clause  V,  or 
Clause  VI,  or  Clause  VII,  of  this  chapter,  the 
market  value  of  which  securities  shall  be  at 
least  20%  in  excess  of  the  amount  secured, 
which  margin  must  always  be  maintained. 

(b)  In  the  note  or  notes  of  an  individual, 
copartnership,  or  Corp.,  secured  by  the  pledge 
as  collateral  of  shares  of  the  capital  stock  of 
any  Steam  R.  R.  Co.  or  Co’s  incorporated  in 
any  of  the  U.  S.,  or  the  Dom.  of  Can.,  whose 
road  is  located  wholly  or  in  part  in  said 
countries,  and  which  is  in  possession  of  and 
is  operating  its  own  road,  and  has  earned  and 
paid  regular  dividends  of  not  less  than  4% 
per  annum  in  each  fiscal  yr.  on  all  its  issues 
of  capital  stock,  for  5 yrs.  last  preceding 
such  investment,  which  shares  are  listed  either 
on  the  N.  Y.,  Boston,  Phil.,  or  Chicago  stock 
exchange,  and  the  market  value  of  which  col- 
lateral shall  be  at  least  20%  ip  excess  of  the 
amount  secured,  which  margin  must  always 
be  maintained  ; such  note  or  notes  to  be  paid 


i 


16 


Savings  Banks.  RHODE  ISLAND. 


or  renewed  within  I yr  from  the  date  thereof. 

(c)  In  the  note  or  notes  of  any  individual, 
copartnership,  or  Corp.,  secured  by  pledge,  as 
collateral,  of  the  capital  stock  of  any  national 
banking  association,  or  of  any  Bk.  or  Tr.  Co., 
incorporated  under  the  laws  of  the  state  in 
which  it  is  located,  other  than  the  New  Eng. 
States  or  the  state  of  N.  Y.,  which  banking 
association,  Bk.  or  Tr.  Co.  is  a member  of 
the  clearing  house  of  any  city  of  the  U.  S. 
which  has  a population  of  more  than  200,000 
inhabitants,  as  ascertained  by  the  last  national 
or  state  census  preceding  such  investment, 
which  securities  shall  have  a fair  market  value 
of  at  least  25%  in  excess  of  such  note  or 
notes  so  secured,  which  margin  shall  always 
be  maintained,  and  in  no  case  shall  an  ag- 
gregate of  more  than  10%  of  such  deposits 
be  loaned  on  such  Bk.  and  Tr.  Co.  stocks, 
nor  more  than  2%  of  such  deposits  on  the 
stock  of  any  1 such  Bk  or  Tr.  Co. 

(d)  In  loans  to  any  depositor  in  such  Corp. 
upon  the  personal  note  of  such  depositor  to 
an  amount  not  exceeding  90%  of  any  such 
deposit:  Provided,  that  the  deposit  and  deposit 
book  of  any  such  depositor,  with  a properly 
executed  assignment  thereof,  shall  be  held  by 
such  Corp.  as  security  for  such  loan. 

Clause  XI.  If  such  deposits  and  income 
cannot  be  satisfactorily  invested  in  the  modes 
provided  in  Clauses  I to  X,  inclusive,  an 
amount  not  exceeding  y§d  part  of  such  de- 
posits may  be  invested  in  promissory  notes 
or  other  personal  securities,  payable  and  to 
be  paid  within  1 year  from  the  date  thereof, 
with  at  least  one  responsible  surety  or  se- 
cured by  collateral  with  a market  value  of  at 
least  20%  in  excess  of  the  amount  loaned 
thereon,  excepting  that  the  margin  required 
in  the  case  of  certain  Bk.  and  Tr.  Co.  stocks, 
provided  for  in  sub-section  (c)  of  Clause 
X,  shall  be  observed,  which  margin  must  al- 
ways be  maintained : — or,  not  exceeding  Y d 
of  said  Yz d part  of  such  deposits  may  be 
loaned  on  single  name  promissory  notes  of 
solvent  individuals,  firms,  or  Corps.,  engaged 
in  mercantile  and  manufacturing  business, 


RHODE  ISLAND.  Savings  Banks. 


that  make  sworn  statements  of  their  condi- 
tion, duly  ascertained  and  certified  to  by  a 
certified  public  accountant,  and  a true  copy 
of  such  statement  and  certificate  shall  be  held 
by  the  Bk.,  Sav.  Bk.  or  Tr.  Co.  making  such 
loans  of  savings  or  participation  deposits : 
Provided,  however,  that  such  single  name 
paper  shall  read  for  a term  of  not  exceeding 
6 mos.,  and  that  all  such  investments  shall  be 
duly  approved  by  at  least  2 of  the  trustees 
or  directors  of  the  Bk.,  Sav.  Bk.,  or  Tr.  Co. 
so  investing  the  savings  or  participation  de- 
posits held  by  it ; — and  it  is  further  provided, 
that  no  Sav.  Bk.  shall  loan  an  amount  in 
excess  of  2%  of  its  deposits  to  any  individual, 
firm,  association  or  Corp.,  including  in  the 
liabilities  of  a partnership  or  association  the 
liabilities  of  the  several  members  thereof, 
either  direct  or  as  endorser,  and  including  in 
the  liabilities  of  an  individual  his  or  her  lia- 
bilities to  such  Sav.  Bk.  as  endorser  or  surety. 

Clause  XII.  In  the  note  or  notes  of  a Gas, 
Water,  Electric  Light  or  Power,  Telephone, 
Electric  R.  R.,  or.  St.  Rwy.  Co.,  incorporated, 
or  doing  business  in  this  state,  which  has  paid 
dividends  of  at  least  4%  in  each  fiscal  year 
upon  all  its  issues  of  capital  stock,  for  5 yrs. 
next  preceding  the  date  of  such  investment : 
Provided,  the  principal  of  said  note  or  notes 
matures  at  a time  not  exceeding  3 yrs.  from 
the  date  of  investment  therein ; and  Pro- 
vided, further,  that  said  note  or  notes  shall 
mature  at  least  5 years  before  the  expiration 
of  the  principal  franchise  or  franchises  un- 
der which  said  Gas,  Electric  Light  or  Power, 
Telephone,  Electric  R.  R.,  Co.  are 

operated;  and  provided,  further,  that  the  ag- 
gregate amount  so  invested  by  any  Bk.,  Sav. 
Bk.  or  Tr.  Co.  in  the  note  or  notes  of  any 
such  Corp.,  together  with  the  bonds  and 
other  securities  of  such  Corp.  held,  shall  not 
exceed  2%  of  said  deposits  held  by  it. 

Clause  XIII.  (a)  Such  Corp.  may  hold 
real  estate  acquired  by  the  foreclosure  of  a 
Mtg.  owned  by  it,  or  by  purchase  at  sales 
made  under  the  provisions  of  such  Mtg.  or 
upon  judgments  for  debts  due  to  it,  or  in  set- 


Savings  Banks.  RHODE  ISLAND. 


dements  effected  to  secure  debts.  All  such 
real  estate  shall  be  sold  by  the  Corp.  within 
5 yrs.  after  the  title  thereof  is  vested  in  it: 
Provided,  that  the  Corp.  may  have  5 yrs.  from 
May  26,  1908,  in  which  to  dispose  of  any  real 
estate  previously  acquired,  but  the  Bank  Com., 
upon  the  written  petition  of  such  Corp.,  and 
for  cause,  may  grant  additional  time  for  the 
sale  of  the  same. 

(b)  Such  Corp.  may  invest  in  real  estate 
suitable  for  the  convenient  transaction  of  its 
business. 

Clause  XIV.  Such  Corp.  may  hold  stocks, 
bonds,  or  other  securities  of  non-legal 
character  acquired  in  settlements  and  reor- 
ganizations effected  to  reduce  or  avoid  losses 
on  defaulted  loans  and  investments,  but,  the 
non-legal  securities  so  obtained  shall  be  sold 
within  5 yrs.  after  being  acquired;  unless  the 
time  is  extended  as  provided  in  preceding 
Clause  XIII.  Such  securities  as  were  so  ac- 
quired before  May  26,  1908,  shall  be  sold 
within  5 yrs.  from  that  date,  unless  the  time 
is  extended  as  provided  in  the  preceding 
Clause  XIII. 

Clause  XV*.  (a)  Securities  acquired  after 
the  passage  of  this  act,  which  were  legal  in- 
vestments when  acquired,  need  not  be  dis- 
posed of  if  it  happens  afterwards  that  the 
net  income  of  the  Corp.  issuing  such  securi- 
ties shall  fall  below  the  limit  fixed  by  this 
act,  or,  in  the  case  of  a city,  county,  town, 
or  Dist.,  if  the  debt  limit  is  exceeded,  unless, 
in  the  judgment  of  the  Com.,  it  is  hazardous 
to  retain  the  same,  in  which  case  said  Com. 
may  give  directions  in  writing,  requiring  the 
disposal  of  such  securities ; and  when  such 
directions  are  given,  such  securities  shall  be 
disposed  of  within  1 yr.  from  the  date  of 
such  notice,  unless  an  extension  of  time  is 
granted  by  said  Com. 

(b)  *Bonds  which  are  legal  investments 
under  the  foregoing  provisions  of  this  chapter 
and  are  secured  by  a Mtg.  which  provides  for 
payments  to  a sinking  fund  shall  cease  to  be 


* Applies  also  to  (tail roads  and  Street  Railways 

19 


RHODE  ISLAND.  Savings  Banks. 


\ 


legal  investments  if  the  Corp.  issuing  such 
bonds  shall  at  any  time  fail  to  make  such 
payments.  And  such  bonds  shall  not  be  legal 
investments  under  the  provisions  of  this  sec- 
tion so  long  as  any  such  payment  is  in  arrears 
and  unpaid. 

(c)  *If  a Corp.  is  formed  by  a consolidation 
or  merger  of  2 or  more  Corps.,  and  it  is  de- 
sired to  ascertain  the  legality  of  the  bonds  of 
the  successor  Corp.  for  investment  of  savs. 
deposits,  the  earnings  and  income  of  the 
several  predecessor  and  constituent  Corps, 
shall  be  consolidated,  and  the  aggregate  cor- 
porate income  so  ascertained  shall  be  regarded 
as  that  of  one  and  the  same  continuous  Corp. 
represented  by  the  successor  Corp. ; or,  if  a 
Corp.  shall  acquire  by  purchase  the  property 
and  franchises  of  another  Corp.,  and  a bond 
issue  is  made  for  the  financing  of  the  trans- 
action, the  legality  of  the  bonds  so  issued 
with  the  other  bonds  of  the  purchasing  Corp. 
shall  be  ascertained  by  the  same  process  as 
in  the  case  of  a consolidation  or  merger  above 
provided,  subject  to  the  rules  applying  to  the 
several  classes  of  Corps,  described  under  the 
preceding  Clauses  of  this  Chap. 

(d)  *If  the  net  earnings  and  income  of  any 
Corp.  whose  bonds  have  been  a legal  invest- 
ment under  the  provisions  of  this  Chap, 
shall  fall  somewhat  below  the  requirements 
of  this  Chap,  for  a period  of  not  exceed- 
ing 2 successive  fiscal  yrs.,  and  in  the  fol- 
lowing yr.  such  earnings  and  income  shall 
be  restored  to  the  required  amount,  said 
Corp.,  after  such  restoration  of  income,  shall 
be  regarded  as  having  complied  with  said  re- 
quirements during  said  period,  but  during  the 
period  of  failure  to  earn  the  required  amount 
no  investment  shall  be  made  in  the  bonds 
of  a Corp.  so  situated. 

(e)  ^Serial  maturities  of  bonds  shall  be 
considered  equivalent  to  sinking  fund  provi- 
sions. 

Clause  XVI.  (a)  Every  Bk.  or  Tr.  Co. 
which  maintains  a savings  or  participation 


* Applies  also  to  Railroads  and  Street  Raifo 


20 


Savings  Banks.  RHODE  ISLAND. 


Dept.,  or  solicits  or  receives  deposits  as  sav- 
ings or  on  participation,  shall  invest  all  de- 
posits therein,  or  so  received,  according  to 
the  requirements  of  this  Chap.,  and  such  de- 
posits, invested  or  uninvested,  shall  be  set 
apart  for  the  exclusive  protection  of  the  de- 
posits in  said  savings  or  participation  Dept., 
and  shall  not  be  liable  for,  or  be  used  to  pay, 
any  other  obligation  or  liability  of  such  Bk. 
or  Tr.  Co.  until  after  the  payment  of  all  the 
deposits  in  said  savings  or  participation  Dept. 

(b)  The  foregoing  provision  as  to  the 
character  of  the  investment  of  savings  or 
participation  deposits  shall  not  render  illegal 
any  investments  of  such  deposits  made  prior 
to  May  26,  1908,  nor  compel  the  change  of 
such  investments  for  those  prescribed  by  this 
Chap.,  except  as  hereinafter  provided. 

(c)  If  any  Bk.  or  Tr.  Co.  shall  continue 
to  hold  such  investments  of  non-legal  char- 
acter made  prior  to  May  26,  1908,  which,  in 
the  opinion  of  the  Bk.  Com.  are  hazardous 
and  unsafe  for  the  investment  of  savings  de- 
posits, said  Com.  may,  by  giving  notice  in 
writing,  require  such  Bk.  or  Tr.  Co.  to  dis- 
pose of  such  investments,  or  substitute  other 
investments  of  a character  in  conformity 
with  the  requirements  of  this  Chap,  within  1 
yr.  from  the  date  of  receipt  of  such  notice, 
and  said  Bk.  or  Tr.  Co.  shall  make  such  dis- 
posal or  substitution  in  accordance  with  such 
requirement;  but,  if  it  shall  appear  on  writ- 
ten request  of  such  Bk.  or  Tr.  Co.  that  ad- 
ditional time  is  reasonably  necessary  in  which 
to  make  such  disposal  or  substitution  in  or- 
der to  avoid  unnecessary  sacrifice,  said  com- 
missioner may  grant  a reasonable  extension 
of  time  for  the  compliance  herewith. 

(d)  If . any  investment  of  the  savings  or 
participation  Dept,  of  any  Bk.  or  Tr.  Co., 
which,  has  been  set  apart  as  provided  in  (a) 
of  this  Clause,  shall  be  in  default  in  pay- 
ment of  either  principal  or  interest,  such  in- 
vestment shall  promptly  be  reduced  in  its 
book  value  approximately  to  the  market  value 
of  the  same. 

(e)  The  uninvested  funds  of  the  savings 


RHODE  ISLAND. 


Savings  Banks. 


or  participation  Dept,  of  any  such  Bk.  or  Tr. 
Co.  shall  be  kept  in  a distinct  deposit  ac- 
count or  accounts,  or  demand  certificates  of 
deposit,  in  such  manner  that  the  same  can  be 
readily  identified  as  clearly  belonging  to  the 
segregated  assets  of  such  savings  or  partici- 
pation deposits. 

(g)  The  Bk.  Com.  in  requiring  the  substi- 
tution of  investments  under  the  provisions 
of  (c)  of  this  Clause,  shall  not  require 
changes  or  substitutions  aggregating  in  any 
i yr.  more  than  2%  of  the  savings  or  partici- 
pation deposits  of  any  such  Tr.  Co.  at  the 
time  of  the  passage  of  this  act. 

Clause  XVII.  (a)  The  provisions  of  this 
chapter  shall  not  render  illegal  any  invest- 
ments held  by  any  Sav.  Bk.  prior  to  May  26, 
1908,  nor  require  the  change  of  any  such  in- 
vestment for  those  herein  prescribed  for  the 
investment  of  savings  deposits;  Provided, 
however,  if  any  Sav.  Bk.  shall  hold  any  such 
investment  or  investments  which  are  in  de- 
fault in  the  payment  of  interest  or  divi- 
dends thereon,  or  which,  at  any  time,  in  the 
opinion  of  the  Bk.  Com.,  are  hazardous  or 
unsafe  for  the  investment  of  savings  deposits, 
the  Bk.  Com.  may  by  notice  in  writing  re- 
quire such  Sav.  Bk.  to  dispose  of  such  in- 
vestments ; and  such  Sav.  Bk.  within  1 yr. 
from  the  receipt  of  such  notice,  unless  such 
time  shall  be  extended  by  the  Com.,  shall 
dispose  of  the  same : Provided  further,  said 
Com.  shall  not  require  the  disposal  of  in- 
vestments aggregating  in  value  in  any  1 yr. 
more  than  2%  of  the  amount  of  the  deposits 
of  such  Sav.  Bk. 

Clause  XVIII.  If  any  bonds  held  by  any 
Sav.  Bk.  shall  be  in  default  either  in  prin- 
cipal or  interest,  such  investment  shall 
promptly  be  reduced  in  its  book  value  ap- 
proximately to  the  market  value  of  the  same. 

Clause  XIX.  No  president,  treasurer,  mem- 
ber of  the  board  of  investment  by  whatever 
name  entitled,  or  officer  of  any  Sav.  Bk., 
charged  with  the  duty  of  investing  its  funds, 
shall  borrow  or  use  any  portion  of  such 
funds,  or  be  surety  for  loans  to  others,  or 


22 


Trust  Companies.  RHODE  ISLAND. 


be  obligor  for  money  borrowed  of  the  Corp., 
either  directly  or  as  trustee  for  others,  and 
if  any  such  officer  or  member  violates  this 
provision  his  office  shall  become  vacant  forth- 
with; excepting,  however,  if  any  such  mem- 
ber or  officer  shall  in  good  faith,  and  sub- 
sequent to  May  26,  1908,  have  become  the 
owner  of  real  estate  on  which  a Mtg.  had, 
1 yr.  or  more  before  the  transaction,  been 
taken  by  the  Corp.  in  regular  course  of  its 
business,  shall  not  be  regarded  as  violating 
this  provision,  if  within  6 mos.  after  the 
acquisition  of  such  real  estate  he  shall  cause 
said  Mtg.  to  be  discharged  or  transferred 
elsewhere,  but  the  continuance  of  such  a sit- 
uation beyond  the  6 mos.  permitted  shall 
make  such  officer  or  member  ineligible  and 
his  office  or  membership  shall  thereupon  be- 
come vacant;  Provided,  however,  that  this 
clause  shall  not  be  so  construed  as  to  pre- 
vent the  deposit,  and  the  withdrawal  of 
money  against  such  deposit  in  Sav.  Bks., 
banks  and  Tr.  Co’s,  by  any  such  officer  or 
trustee. 

Clause  XX.  Every  investment  of  the  de- 
posits and  income  received  and  held  by  Sav. 
Bks.  or  the  savings  or  participation  Dept, 
of  Bks.  and  Tr.  Co’s,  made  after  the  passage 
of  this  act,  if  bought  below  par,  shall  be  en- 
tered on  the  books  and  returns  of  the  Corp. 
holding  the  same  at  the  actual  cost  price 
thereof,  and  the  discounts  in  the  price  thereof, 
may,  .by  an  equal  annual  amortization,  be  ex- 
tinguished so  as  to  gradually  bring  the  book 
value  thereof  to  par  at  maturity. 

TRUST  COMPANIES. 

Chap.  231,  Gen.  Laws,  1909. 

Sec.  7.  Every  Tr.  Co.  shall  be  required  to 
deposit  with  the  general  treasurer  of  this 
state,  in  bonds  of  this  state  or  of  the  state 
of  N.  Y.,  or  of  some  of  the  New  Eng.  states 
or  of  the  U.  S.,  or  in  the  bonds,  notes,  or 
other  financial  obligations  of  any  town  or 
city  in  this  state,  or  in  any  securities  of  the 
classes  in  which  the  Bd.  of  Com.  of  sinking 


RHODE  ISLAND.  Trust  Companies. 


funds  of  this  state  are  authorized  to  invest 
the  moneys  received  by  them,  or  in  1st  Mtg’s. 
on  improved  real  estate  in  this  state  of  the 
class  required  for  Sav.  Bk.  investments,  an 
amount  that  shall  be  at  all  times  equal  in 
value  to  20%  of  the  entire  capital  stock  of 
said  Corps.,  which  bonds  shall  be  held  by  said 
treasurer  as  an  additional  security  for  the 
faithful  performance  by  said  Corp.  of  its  duties 
as  trustee,  executor,  custodian,  conservator, 
guardian,  assignee,  or  receiver,  and  also  as  an 
additional  security  for  the  repayment  of 
moneys  deposited  with  said  Corp.  by  execu- 
tors, administrators,  custodians,  conserva- 
tors, guardians,  assignees,  or  receivers,  or 
trustees  on  special  agreement,  * * * Provided, 
however,  that  whenever  such  deposit  or  any 
part  thereof  shall  consist  of  Mtg’s  on  real 
estate,  the  company  so  depositing  the  same 
shall  execute  an  assignment  thereof  and  of 
the  debts  secured  thereby  in  favor  of  the  gen- 
eral treasurer  of  the  state,  in  trust,  for  the 
uses  and  purposes  herein  mentioned : Pro- 
vided, that  all  Tr.  Co’s.  Inc.  before  the  26th 
day  of  May,  1908,  and  which  shall  have  or- 
ganized under  their  charters  and  be  doing 
business  before  said  date,  which  by  the  ex- 
press provisions  of  their  charters  were  re- 
quired to  deposit  bonds  with  the  general 
treasurer  of  this  state  only  whenever  after 
their  incorporation  they  should  receive  and 
assume  to  execute  certain  trusts  specified 
in  their  charters,  shall  not  be  subject  to  the 
provisions  of  their  respective  charters  in 
this  behalf  for  5 yrs.  next  after  said  date; 
and  no  such  Co.  shall  accept  or  assume  to 
perform  any  of  the  trust  duties  mentioned  in 
this  section  or  receive  any  deposits  from  any 
of  the  trustees  herein  mentioned  until  such 
deposit  shall  have  been  made. 

Sec.  8.  * * * and  shall  also  permit  said 
Corp.  to  retire  any  securities  so  deposited,  on 
substituting  therefor  other  securities  of  any 
or  either  of  the  classes  mentioned  above,  to 
such  an  amount  that  the  market  value  of  the 
whole  deposit  shall  not  be  less  than  the 


24 


Trust  Companies.  RHODE  ISLAND. 


amount  required  by  the  provisions  of  the 
preceding  section. 

Chap.  237,  Gen.  Laws,  1909. 

Sec.  1.  No  Bk.  or  Tr.  Co.  shall  make  any 
loan  or  advance  to  an  amount  in  excess  of 
20%  of  the  capital,  surplus,  and  undivided 
profits  of  the  Bk.  or  Tr.  Co.  making  such  loan, 
the  repayment  of  which  is  undertaken  in 
whole  or  in  part,  severally,  but  not  jointly, 
by  2 or  more  individuals,  corporations,  firms, 
or  other  parties. 

Sec.  2.  No  Bk.  or  Tr.  Co.  shall  make  any 
loan  or  advance  where  such  Bk.  or  Tr.  Co. 
is  liable  directly,  indirectly,  or  contingently 
for  the  repayment  of  such  loan  or  advance 
in  whole  or  in  part. 

Sec.  3.  The  total  liabilities  to  any  Bk.  or 
Tr.  Co.  of  any  person  or  of  any  Corp.  or  firm 
for  money  borrowed,  including  in  the  lia- 
bilities of  a firm  the  liabilities  of  the  several 
members  thereof,  shall  at  no  time  exceed 
i-ioth  part  of  the  amount  of  the  capital  stock 
of  such  Bk.  or  Tr.  Co.,  actually  paid  in  and 
unimpaired,  and  i-ioth  part  of  its  unimpaired 
surplus  fund : Provided,  however,  that  the 
total  of  such  liabilities  shall  in  no  event  ex- 
ceed 30%  of  the  capital  stock  of  said  Bk. 
or  Tr.  Co.  But  the  discount  of  bills  of  ex- 
change drawn  in  good  faith  against  actually 
existing  values,  and  the  discount  of  com- 
mercial or  business  paper  actually  owned  by 
the  person  negotiating  the  same,  shall  not  be 
considered  as  money  borrowed. 

Sec.  4.  No  Bk.  or  Tr.  Co.  shall  make  any 
loan  to  its  president,  its  vice-president,  its 
cashier,  or  to  any  of  its  directors  or  any  of 
its  clerks,  tellers,  bookkeepers,  agents,  ser- 
vants, or  other  persons  in  its  employ,  until 
the  proposition  to  make  such  a loan,  stat- 
ing the  amount,  terms,  and  security,  if  any, 
offered  therefor,  shall  have  been  submitted 
in  writing,  by  the  person  desiring  the  same, 
to  a meeting  of  the  board  of  directors  of  such 
Bk.  or  of  the  executive  or  finance  commit- 
tee of  such  board,  if  any,  and  accepted  and 


25 


RHODE  ISLAND.  State  Banks. 


approved  by  the  vote  of  a majority  of  those 
present  constituting  a quorum,  * * * 

Sec.  6.  No  Bk.  or  Tr.  Co.  shall  make  a loan 
or  discount  on  the  security  of  the  shares  of 
its  own  capital  stock,  nor  be  the  purchaser 
or  holder  of  such  shares,  unless  such  security 
or  purchase  shall  be  necessary  to  prevent  loss 
upon  a debt  previously  contracted  in  good 
faith:  Provided,  however,  that  whenever  a 
bank  shall  make  a valid  loan  or  discount  in 
good  faith  upon  the  general  credit  of  specific 
security  or  collateral  of  a shareholder,  other 
than  the  shares  in  such  bank,  nothing  in 
this  section  contained  shall  be  construed  to 
abridge  or  modify  any  of  the  provisions  of 
the  charter  or  by-laws  of  such  bank,  as  af- 
fecting such  transaction,  giving  it  a lien  upon, 
or  any  other  right  or  remedy  relating  to  or 
affecting,  the  stock  of  such  shareholder.  All 
stock  so  purchased  or  acquired  by  the  bank 
in  good  faith  as  aforesaid  shall,  within  i yr. 
after  its  purchase,  be  sold  or  disposed  of  at 
public  or  private  sale. 

Sec.  26.  No  Bk.  shall  be  liable  to  a depos- 
itor, or  to  the  drawer  of  a bill  of  exchange 
upon  the  Bk.,  for  an  amount  charged  to  or 
collected  from  him  on  account  of  the  payment 
by  such  Bk.  or  Tr.  Co.  of  a negotiable  instru- 
ment upon  which  the  signature  of  any  party  is 
forged,  or  which  is  made,  drawn,  accepted  or 
endorsed  without  authority,  or  which  is  mate- 
rially altered,  or  the  amount  of  which  is  raised ; 
unless  within  one  Yr.  after  the  return  of  such 
negotiable  instrument  to  such  depositor  or 
drawer,  he  shall  notify  the  Bk.  in  writing  that, 
as  the  case  may  be,  the  signature  of  a party 
to  the  instrument  is  forged,  or  that  the  instru- 
ment was  made,  drawn,  accepted  or  endorsed 
without  authority,  or  that  it  has  been  materially 
altered,  or  that  the  amount  has  been  raised. 

See  Chap.  237,  and  Clause  XVI,  Chap  687, 
under  Sav.  Bks. 

STATE  BANKS. 

See  Chap.  237  and  Clause  XVI,  Chap.  687, 
under  Savings  Banks  and  Chap.  237  under 
Trust  Companies. 


26 


i 


* 


1 


Banks  and  Trust  Companies. 


TENNESSEE. 


Municipal  Law  in  red . Street  Railway  Law  in 

Railroad  Law  in  green . brown . 

Other  matter  in  black . 


TENNESSEE. 

SAVINGS  AND  DISCOUNT  BANKS. 

§2054.  (3)  Powers.  To  purchase  and  hold, 
or  receive  by  gift,  in  addition  to  the  personal 
property  owned  by  said  Corp.,  any  real  estate 
necessary  for  the  transaction  of  the  corporate 
business,  and  also  to  purchase  or  accept  any  real 
estate  in  payment  or  part  payment  of  any  debt 
due  to  the  Corp.,  and  sell  realty  for  Corp.  pur- 
poses (1875,  ch.  142,  §5.) 

§2084.  ...  It  may  deal  in  exchange,  gold, 
silver  and  bullion,  buy  and  discount  notes  and 
bills  of  exchange,  and  do  and  perform  all 
acts  usually  done  and  performed  by  banking- 
institutions.  . . . (1875,  ch.  142,  §17.) 

§2085.  The  said  Corp.  . / . shall  invest  all 
moneys  (deposits)  so  received  in  discounted 
paper,  public  stocks  or  other  securities,  at  the 
discretion  of  the  directors,  and  in  a manner 
deemed  most  beneficial  for  the  interest  of  the 
depositors,  so  that  the  investment  be  pursuant 
to  the  by-laws.  . . . (Ib.) 

See  also  General  Provisions. 


BANKS  AND  TRUST  COMPANIES 


[Banks  if  they  choose  may  be  authorized 
to  couple  with  the  ordinary  business  of  banking 
a Safe  Dep.  and  Tr.  Co.] 

§2091.  Powers.  (3)  To  purchase  and  hold 
real  estate  necessary  for  the  transaction  of 
corporate  business,  and  also  to  purchase  and  ac- 
cept any  real  estate  in  payment  or  in  part  pay- 
ment of  any  debt  due  to  the  Corp.,  and  to  sell 
realty  for  Corp.  purposes.  (1883,  c.  168,  §1.) 

§2097.  This  Corp.  shall  be  invested  with 
the  right  and  power  ...  to  discount  promis- 
sory notes,  bill  of  exchange,  or  other  evidence 
of  debt,  buy  and  sell  the  same,  deal  in  gold, 
silver,  bullion,  bonds,  stocks  or  other  securities 
generally,  advance  money  on  a pledge  or  mort- 
gage of  real  or  personal  estate,  and  sell  the 
same,  and  have  and  possess  all  other  rights 
which  appertain  to  a banking  institution.  (Ib.) 

1 


TENNESSEE. 


State  Banks. 


AN  ACT  to  provide  for  the  investment  of 
the  estates  of  minors  in  the  hands  of  guardians, 
and  to  allow  guardians  the  cost  of  security 
given  by  them. 

Sec.  i.  Be  it  enacted  by  the  General  As- 
sembly of  the  State  of  Tenn.,  That  in  addition 
to  the  kind  and  character  of  securities  in 
which  guardians  are  now  permitted  by  law  to 
invest  the  funds  of  their  wards,  guardians  are 
authorized  and  empowered  to  invest  such  funds 
in  the  following  securities,  namely: 

1.  In  the  bonds  of  counties,  cities,  towns  or 
levee  districts;  Provided , that  at  the  time  such 
investment  is  made,  the  interest  is  being  regu- 
larly paid  on  said  bonds. 

2.  In  the  stock  of  good  and  solvent  Tr. 
Cos.,  having  a surplus,  and  paying  regular  an- 
nual dividends  of  not  less  than  6%. 

Acts  of  1901,  Ch.  146,  1901,  Apr.  18. 

See  also  General  Provisions. 

STATE  BANKS. 

Sec.  5.  Be  it  further  enacted,  That  all  funds 
held  by  such  Bks.  in  any  of  the  fiduciary  ca- 
pacities hereinbefore  in  this  Act  mentioned, 
which  as  such  it  has  under  existing  laws, 
power,  authority  or  direction  to  invest,  may, 
unless  otherwise  required  by  the  principal,  or 
by  the  court,  or  by  the  person  creating  the  trust, 
agency  or  other  fiduciary  capacity,  buy  U.  S. 
bonds  or  State  bonds  of  the  state  of  Tenn.,  or 
• ■ - or  bonds  of 

any  county  or  municipal  Corp.,  provided,  that 
such  bonds  shall  at  the  time  of  investment  be  at 
par  or  above  par  value  in  the  market  where 
such  bonds  are  usually  listed  and  sold,  and 
have  regularly  paid  a dividend  of  not  less  than 
4%  per  annum  for  the  last  5 years  next  pre- 
ceding such  investment,  or  in  the  1st  Mtgs.  on 
real  estate,  provided  that  no  sum  shall  be 
loaned  on  any  Mtg.  for  more  than  50%  of  the 
appraised  value  of  the  property  mortgaged, 
nor  for  a longer  period  than  10  years.  . . . 

See  also  General  Provisions 

GENERAL  PROVISIONS. 

§3226.  Real  estate  . . . and  no  bank  shall 
hold  or  own  more  real  estate  than  is  neces- 


General  Provisions. 


TENNESSEE. 


sary  to  carry  on  its  banking  business;  pro- 
vided, however,  it  may  receive  Mtgs.  and  as- 
signments for  debts  previously  contracted ; and 
purchase  in  real  estate  thus  mortgaged  or  as- 
signed; and  purchase  in  lands  sold  at  execu- 
tion sales  under  judgments  in  its  favor,  or 
redeem  lands  subject  to  redemption  in  order 
to  secure  its  bad  or  doubtful  debts ; but  it  shall 
not  hold  the  same  for  a longer  period  than  5 
years.  (1859-60,  ch.  27,  §5.). 

§3235.  No  Bk.  shall  buy  in,  hold  or  cancel 
its  own  stock;  but  may  receive  it  in  payment 
of  bad  and  doubtful  debts,  or  for  the  purchase 
of  real  estate,  and  in  such  case  the  stock  shall 
be  conveyed  to  a third  party,  in  trust,  to  be 
sold  by  him  for  the  benefit  of  such  Bk.  (Ib., 

§17.) 

§2040.  Any  Co.  incorporated  under  the  laws 
of  this  State  having,  by  its  charter,  the  right 
to  receive  moneys  in  trust  or  otherwise,  shall 
be  held  to  have,  and  shall  have,  the  power  to 
receive  deposits  and  loan  the  same  and  its 
capital  on  any  kind  of  a commercial  or  busi- 
ness paper  or  real  estate,  buy  and  sell  exchange, 
and  all  kinds  of  public  or  private  securities 
and  commercial  paper.  (1887,  ch.  190.) 

A GENERAL  ACT  relating  to  Banks  and 
Banking,  to  take  effect  Jan.  1,  1914  (1913 
Sess.  Leg.) 

Sec.  44.  The  term  or  word  “bank,”  or 
“banks,”  or  “banker,”  as  used  in  this  Act,  shall 
signify,  mean,  cover  and  include  every  Tr.  Co., 
Loan  Co.,  Mtg.  Security . Co.,  Safe  Dep.  Co., 
receiving  money  on  deposit,  and  every  Individ- 
ual, Firm,  Corp.,  Asso.  or  Co.  doing  a bank- 
ing, loan  or  discount  business  and  receiving 
money  on  deposit  and  performing  functions 
of  a Bk. 

Sec.  19.  No  Bk.,  firm,  person,  or  Corp.  do- 
ing a banking  business  shall  reduce,  or  be  al- 
lowed to  reduce  the  cash  of  the  Bk.  on  hand 
below  10%  of  demand  deposits,  provided  that 
(said)  reserve  may  consist  of  the  balance  due 
by  Bks.  and  bankers  to  said  Bk.  when  payable 
on  demand. 

Whenever  the  money  reserve  shall  fall  be- 
low the  amount  above  required,  such  Bk.  shall 
not  increase  its  liabilities  by  making  any  new 


TENNESSEE. 


General  Provisions. 


loans  or  discounts,  otherwise  than  by  discount- 
ing or  purchasing  bills  of  exchange  payable 
at  sight.  . . . 

Sec.  20.  No  Bk.,  person,  firm,  or  Corp.  do- 
ing a banking  business  shall  lend  money  to 
any  salaried  officer  or  agent,  or  employee  of 
the  Bk.,  nor  to  any  firm  or  Corp.  in  which  such 
salaried  officer,  agent  or  employee  of  the  Bk. 
owns  an  interest,  without  the  loan  being  sub- 
mitted to  and  approved  by  the  board  of  direc- 
tors of  the  Bk.  (where  the  Bk.  is  a Corp.), 
and  by  all  of  the  officers  of  the  Bk.  where  the 
Bk.  is  not  a Corp.,  provided,  however,  if  the 
board  of  directors  of  a Corp.  has  delegated 
the  power  to  pass  on  loans  to  an  Executive  or 
Financial  Com.,  the  approval  of  such  loan  by 
such  Com.  may  be  made  in  lieu  of  the  approval 
of  the  board  of  directors. 

Sec.  21.  No  Bk.,  person,  firm,  or  Corp.  do- 
ing a banking  business  shall  be  allowed  to  lend 
any  one  person,  firm,  or  Corp.  (including  in 
loans  to  a firm,  loans  to  several  members 
thereof)  more  than  15%  of  its  capital,  surplus 
and  undivided  profits;  Provided , however , a 
loan  in  excess  of  15%  of  capital,  surplus,  and 
undivided  profits,  may  be  made  if  the  loan 
be  approved  by  a majority  of  the  Executive 
or  Financial  Com.,  in  case  of  an  incorporated 
Bk.,  or  by  all  its  officers,  if  not  an  incorporated 
Bk. 

No  Bk.,  person,  firm,  or  Corp.  doing  a bank- 
ing business  shall  make  any  loan  or  discount 
on  the  security  of  the  shares  of  its  own  capi- 
tal stock,  nor  be  the  purchaser  or  holder  of 
any  such  shares,  unless  such  security  or  pur- 
chase shall  be  necessary  to  prevent  loss  upon 
a debt  previously  contracted  in  good  faith,  and 
stock  so  purchased  or  acquired  shall,  within 
6 months  from  the  time  of  its  purchase,  be 
sold  or  disposed  of  at  public  or  private  sale. 

Sec.  35.  Any  director  of  an  incorporated  Bk. 
who  concurs  in  any  vote,  or  act,  of  the  direct- 
ors of  such  Bk.  by  which  it  is  intended.  . . 

(3)  To  discount  or  receive  any  note  or  other 
evidence  of  debt  in  payment  of  capital  stock 
required  to  be  paid,  or  with  intention  to  pro- 
vide the  means  of  making  such  payment;  or 

(4)  To  receive  or  discount  any  note  or  other 
evidence  of  debt,  with  the  intent  to  enable  any 


General  Provisions. 


TENNESSEE. 


stockholder  to  withdraw  any  part  of  the  money 
paid  in  by  him  on  his  stock;  or  (5)  To  apply 
any  portion  of  the  funds  of  such  Corp.  ex- 
cept as  allowed  by  law,  directly  or  indirectly, 
to  the  purchase  of  shares  of  its  own  stock,  is 
) guilty  of  a misdemeanor.  . . . 

Sec.  37.  Any  officer  or  employee  of  an  in- 
corporated Bk.  who  intentionally  conceals  from 
the  directors  of  such  Corp.  or  committee  of 
such  Corp.,  where  the  directors  have  delegated 
authority  to  a committee,  to  pass  on  loans  and 
discounts,  any  discount  or  loan  made  for  and 
in  behalf  of  the  Corp.  between  the  regular 
meetings  of  its  board  of  directors  or  commit- 
tee, or  the  purchase  of  any  security,  or  the 
sale  of  any  of  its  securities  during  the  same 
period,  is  guilty  of  a misdemeanor.  . . . 

Sec.  38.  Any  individual  banker,  or  officer, 
or  employee  of  an  incorporated  Bk.,  or  of  a 
firm  or  individual  banker,  who,  wilfully  and 
knowingly  and  without  authority  from  the 
board  of  directors  or  governing  body  of  such 
Bk.,  or  2 or  more  of  the  active  managing  of- 
ficers of  such  Bk.,  overdraws  his  accounts  with 
such  Bk.  and  thereby  obtains  money  or  funds 
of  any  such  Bk.,  or  asks,  or  receives,  or  con- 
sents, or  agrees  to  receive  any  commission, 
emolument,  gratuity  or  reward,  or  any  promise 
of  any  commission,  emolument  or  reward, 
property,  or  thing  of  value  or  of  personal  ad- 
vantage in  procuring  or  endeavoring  to  pro- 
cure for  any  person,  firm  or  Corp.,  any  loan 
from  or  the  purchase  or  discount  of  any  paper, 
note,  draft,  check,  or  bill  of  exchange,  by  any 
such  Bk.,  is  guilty  of  a misdemeanor.  . . . 

Sec.  39.  It  shall  be  unlawful  for  the  Supt. 
of  Bks.,  or  any  examiner  appointed  by  him 
to  make  application  to  any  Bk.,  subject  to  his 
examination  or  control,  under  the  provisions 
of  this  Act,  for  any  loan,  or  discount  of  com- 
mercial paper  belonging  to  him,  or  for  any 
| other  person,  firm  or  Corp.  . . . 

Sec.  45.  All  laws  in  conflict  with  the  provi- 
sions of  this  Act  are  hereby  repealed. 


w 


State  Banks  of  Deposit  and  Discount. 


TEXAS. 


Municipal  Law  in  red. 
Railroad  Law  in  green. 


Street  Railway  Law  in 


brown. 

Other  matter  in  black. 


> 


TEXAS. 


STATE  BANKS  OF  DEPOSIT  AND  DISCOUNT. 

Sec.  3,  Ch.  io,  Acts  29th  Leg.  Every  such 
Corp.  shall  be  authorized  and  empowered  to 
conduct  the  business  * * * of  loaning  money 
upon  real  estate  and  personal  property  and 
upon  collateral  and  personal  securities  at  a rate 
of  interest  not  exceeding  that  allowed  by  law; 
provided,  that  no  bank  organized  under  this 
act  shall  loan  more  than  50%  of  its  securities 
upon  real  estate,  and  no  such  bank  shall  make 
a loan  on  real  estate  of  an  amount  greater  than 
50%  of  the  reasonable  cash  value  thereof ; also 
of  buying,  selling  and  discounting  negotiable 
and  non-negotiable  paper  of  all  kinds  as  well 
as  all  kinds  of  commercial  paper. 

Sec.  7.  * * * whenever  the  reserve  of  a 

bank,  * * * shall  fall  below  25%  of  the  demand 
deposits,  then  such  bank  shall  not  make  any 
new  loans  or  discounts  until  it  shall,  by  col- 
lections, restore  its  lawful  reserve.  * * * 

Sec.  42,  Ch.  15,  Acts  31st  Leg.  Any  director 
of  a State  bank  or  B’k’g.  and  Tr.  Co.  incor- 
porated under  the  laws  of  this  State,  who  shall 
either  directly  or  indirectly  borrow  any  of  the 
funds  of  such  bank  in  excess  of  10%  of  its 
capital  and  surplus  without  the  consent  of  a 
majority  of  the  directors  of  the  bank  first 
having  been  obtained  and  made  a matter  of 
record  at  a regular  meeting  of  the  board,  or 
without  the  written  consent  of  such  majority 
of  the.  directors  other  than  the  borrowers  be- 
ing jointly  executed  by  them  and  filed  in  the 
archives  of  such  bank  before  the  loan  is  made, 
and  any  officer  of  a State  bank  who  shall 
knowingly  becorpe  indebted  to  such  bank, 
directly  or  indirectly,  in  any  sum  whatever, 
without  the  consent  of  a majority  of  the  board 
other  than  the  borrower,  obtained  or  recorded, 
or  filed  in  like  manner,  and  any  officer  or 


TEXAS.  State  Banks  of  Deposit  and  Discount. 

director  of  such  bank  who  shall  knowingly 
loan  or  assent  to  the  loaning  of  any  of  its 
funds  to  any  officer,  or  any  of  its  funds  to 
any  director,  in  excess  of  10%  of  its  capital 
and  surplus  without  such  consent  being  first 
obtained  and  recorded  or  filed,  or  who  shall 
knowingly  permit  any  such  officer  or  director 
to  become  indebted  to  the  bank  or  liable  to  it 
without  such  consent,  shall  be  deemed  guilty 
of  a felony  and  shall  be  punished  by  imprison- 
ment in  the  State  penitentiary  for  a term  of 
not  less  than  2 years,  upon  conviction  thereof. 

Sec.  13,  Ch.  15,  Acts  31st  Leg.  * * * All 
banks  or  banking  and  Tr.  Cos.  establishing  or 
maintaining  a Savs.  Dept,  or  using  the  word 
“savings”  * * * shall  keep  all  moneys  received 
as  such  savings  deposits  and  the  funds  and 
securities  in  which  the  same  may  be  invested, 
at  all  times  segregated  from  and  unmingled 
with  the  other  moneys  and  funds  of  the  bank 
or  banking  and  Tr.  Co.,  and  may  invest  not 
more  than  85%  of  the  total  amount  of  such 
savings  deposits  in  any  of  the  following  classes 
of  securities,  and  not  otherwise,  to  wit : 

1.  In  bonds  or  interest-bearing  notes  or  ob- 
ligations of  the  U.  S.  or  of  those  for  which 
the  faith  of  the  U.  S.  is  pledged  for  the  pay- 
ment of  principal  and  interest. 

2.  In  bonds  of  any  city,  county,  town  or 
Sch.  Dist.  or  other  Subdiv.  of  this  State,  now 
organized  or  which  may  hereafter  be  organized, 
and  which  is  now  or  may  hereafter  be  author- 
ized to  issue  bonds  under  the  Constitution  and 
laws  of  this  State,  which  has  not  defaulted  in 
the  payment  of  any  part  of  either  principal  or 
interest  thereof,  within  5 years  previous  to 
making  such  investments. 

3.  In  bonds  of  the  State  of  Texas  or  of 
any  State  of  the  Union  that  has  not  within 
the  last  5 years  previous  to  making  such  in- 
vestment defaulted  in  the  payment  of  any  part 
of  either  principal  or  interest  thereof. 

4.  In  the  1st  Mtg.  bonds  of  any  steam  or 
electric  R.  R.,  the  income  of  which  is  sufficient 
to  pay  all  operating  expenses  and  fixed  charges, 
which  has  its  domicile  in  the  State. 


2 


State  Banks  of  Deposit  and  Discount. 


TEXAS 


5.  In  bonds  or  notes  secured  by  1st  Mtg., 
deed  of  trust  or  other  valid  lien  on  unincum- 
bered improved  real  estate  to  run  for  a term 
of  not  longer  than  10  years,  situated  in  the 
State,  worth  at  least  twice  the  amount  loaned 
thereon,  such  bond  or  notes  to  be  always  ac- 
companied by  a complete  abstract  of  title  to 
the  property  mortgaged  and  an  attorney’s  cer- 
tificate or  title  Ins.  policy  in  some  Co.  incor- 
porated under  the  laws  of  this  State,  certify- 
ing said  bonds  or  notes  to  be  the  first  lien  on 
the  land  mortgaged. 

It  shall  be  the  duty  of  the  directors  of  such 
bank  or  banking  and  Tr.  Co.,  as  soon  as  prac- 
ticable, to  invest  the  moneys  and  funds  of  such 
Savs.  Dept.,  by  purchase  or  otherwise,  in  the 
securities  above  described,  and  from  time  to 
time  to  sell  and  reinvest  the  proceeds  of  such 
investments,  but  for  the  purpose  of  meeting 
current  demands  in  excess  of  the  receipt,  any 
of  the  securities  may  be  sold,  or  taken  up  and 
replaced  in  cash  by  the  bank  or  banking  and 
Tr.  Co.  out  of  its  general  fund,  and  there  shall 
be  kept  on  hand  at  all  times  not  less  than  15% 
of  the  whole  amount  of  such  deposits  in  actual 
cash,  in  such  Savs.  Dept.  * * * 

* * * It  shall  be  unlawful  for  any  director  or 
officer  of  any  bank  or  banking  and  Tr.  Co. 
which  shall  establish  or  maintain  or  continue 
to  maintain  a Savs.  Dept,  or  which  shall  use 
the  word  “savings”  * * * to  borrow  any  of  the 
funds  belonging  to  such  Savs.  Dept.,  or  to  in 
any  way  be  an  obligor  for  moneys  loaned  by 
or  borrowed  of  such  Savs.  Dept.,  or  to  receive 
or  accept,  directly  or  indirectly  any  commis- 
sion, brokerage  or  other  valuable  thing  or 
favor  of  any  kind  by  reason  or  on  account  of 
any  loan  or  investment  made  out  of  the  funds 
of  such  Savs.  Dept.,  or  to  sell  to  such  Savs. 
Dept,  any  security  or  other  investment,  or  wil- 
fully and  knowingly  do  or  perform  any  act  or 
transaction  by  or  as  a result  of  which  at  any 
time  the  assets  of  such  Savs.  Dept.,  including 
cash,  shall  not  at  least  equal  in  amount  the  de- 
posits in  such  Savs.  Dept.,  at  least  15%  of 


3 


State  Banks  of  Deposit  and  Discount. 


which  shall  be  actual  cash  in  such  Savs.  Dept. 
* * * 

Sec.  58,  Ch.  10,  Acts  29th  Leg.  The  directors 
of  banks  and  Tr.  Co’s,  created  under  this  act 
shall  have  power  of  investing  the  moneys 
placed  in  their  charge  in  loans  secured  by  real 
estate  or  other  sufficient  collateral  security,  in 
public  bonds  of  the  U.  S.  or  of  this  State,  in  the 
bonds  of  any  incorporated  city,  or  county,  or 
independent  Sch.  Dist.  in  this  State.  Such 
Corp.  shall  own  only  such  real  estate  as  may 
be  required  for  the  transaction  of  their  busi- 
ness, and  such  as  they  may  acquire  in  the  en- 
forcement and  collection  of  debts  or  liabilities 
to  them,  which  lands  so  acquired  by  any  such 
Corp.  shall  be  alienated  by  it  within  5 years 
after  its  acquisition  to  some  one  not  interested 
directly  or  indirectly  in  said  Co.  * * * 

Sec.  28,  Ch.  15,  Acts  31st  Leg.  * * * it  shall 
be  unlawful  for  any  State  bank  or  Tr.  Co.  to 
own  more  than  10%  of  the  capital  stock  of 
any  other  Bkg.  Corp.,  or  to  make  a loan, 
secured  by  the  stock  of  any  other  Bkg.  Corp., 
if  by  the  making  of  such  loan  the  total  stock 
of  such  other  Bkg.  Corp.  held  by  it  as  collat- 
eral will  exceed  in  the  aggregate  10%  of  the 
capital  stock  of  such  other  Bkg.  Corp.  unless 
the  ownership  or  the  taking  of  a greater  per- 
centage of  such  capital  stock  as  collateral  shall 
be  necessary  to  prevent  loss  upon  a debt  pre- 
viously contracted  in  good  faith,  and  any  such 
excess  so  taken  as  collateral  or  owned  by  such 
State  bank  shall  not  be  held  as  collateral  nor 
owned  by  it  for  a longer  period  than  6 months. 

Sec.  36.  No  State  bank*  shall  make  any  loan 
or  discount  on  the  security  of  the  shares  of 
its  own  capital  stock,  nor  be  the  purchaser  or 
holder  of  any  such  shares,  unless  such  secu- 
rity or  purchase  shall  be  necessary  to  prevent 
a loss  upon  a debt  previously  contracted  in 
good  faith ; and  stock  so  purchased  or  ac- 
quired shall,  within  6 months  from  the  time 
of  its  purchase,  be  sold  or  disposed  of  at  pub- 

* The  Dept,  of  Ins.  and  B’k’g.  construes  “State 
Banks,”  in  this  Sec.,  to  mean  all  classes  of  State 
B’k’g.  Corps. 


Trust  Companies. 


TEXAS. 


lie  or  private  sale,  or,  in  default  thereof,  such 
State  bank  shall  be  considered  to  have  its 
capital  stock  impaired  to  the  extent  of  the  par 
value  of  such  shares. 

Sec.  48.  It  shall  be  unlawful  for  any  State 
hank  or  Bkg.  and  Tr.  Co.  in  this  State  to 
directly  or  indirectly  loan  to  the  Com.  of  Ins. 
and  Bkg.  or  any  other  person  interested  in  or 
employed  by  the  Dept,  of  Ins.  and  Bkg.  * * * 


TRUST  COMPANIES. 


Sec.  8,  Ch.  10,  Acts  29th  Leg.  Any  5 or 
more  persons  * * * who  shall  have  associated 
themselves  * * * as  provided  by  law  for  the 
purpose  of  establishing  a banking  and  trust 
company,  may  be  incorporated  under  any  name 
or  title  designating  such  business.  Trust  Com- 
pany wherever  appearing  in  the  following  sec- 
tions of  this  act,  is  intended  to  mean  Banking 
and  Trust  Company,  * * * 

Sec.  11.  Corps,  may  be  created  * * * for 
the  purpose  of  establishing  a bank  of  deposit 
and  discount,  or  both  of  deposit  and  discount, 
with  the  powers  set  out  in  Sec.  3 of  this  act, 
and  any  one  or  more  of  the  following  pur- 
poses : 

* * * (2)  To  receive  deposits  or  trust  mon- 
eys, securities  and  other  personal  property 
from  any  person  or  Corp.,  and  to  loan  money 
on  real  or  personal  securities. 

(3)  To  lease,  hold,  purchase  and  convey 
any  and  all  real  property  necessary  in  the 
transaction  of  its  business,  or  which  it  shall 
acquire  in  satisfaction  or  partial  satisfaction 
of  debts  due  the  Corp.,  under  sales,  judgments 
or  mortgages,  or  in  settlement  or  partial  set- 
tlement of  debts  due  the  Corp.  by  any  of  its 
debtors. 

Which  shall  be  alienated  in  good  faith  to 
some  person  other  than  some  one  interested 
in  the  Co.,  within  5 years  from  the  date  of 
its  acquisition. 

* * * (9)  To  purchase,  invest  in,  guarantee 
and  sell  stocks,  bills  of  exchange,  bonds  and 
mortgages  and  other  securities;  and  when 

5 


TEXAS. 


Savings  Banks. 


moneys,  or  securities  for  moneys,  are  bor- 
rowed or  received  on  deposit,  or  for  invest- 
ment, the  bonds  or  obligations  of  the  Co.  may 
be  given  therefor;  * * * 

Note. — Bank  and  Tr.  Cos.,  not  exercising  bank- 
ing privileges,  may  loan  more  than  50%  of  its 
securities  on  real  estate,  and  may  guarantee  the 
payment  of  notes  in  excess  of  the  amount  it  may 
loan  to  one  person.  (Opinion  of  Att.  Gen’s  Dept.) 

Everything  under  State  Banks  of  Deposit 
and  Discount  applies  to  Trust  Companies. 


SAVINGS  BANKS.* 

Sec.  17,  Ch.  10,  Acts  29th  Leg.  All  sums  so 
received,  except  those  held  as  bailee,  for  safe 
keeping  and  storage  only,  and  the  income  de- 
rived therefrom,  and  all  moneys  intrusted  to 
any  such  corporation  by  order  of  court  shall  be 
invested  as  follows : 

(1)  In  bonds  or  interest  bearing  notes  or 
obligations  of  the  U.  S.,  or  of  those  for  which 
the  faith  of  the  U.  S.  is  pledged  for  the  pay- 
ment of  principal  and  interest. 

(2)  In  bonds  of  the  State  of  Texas,  or  of 
any  State  in  the  Union  that  has  not,  within 
the  last  5 years  previous  to  making  such  in- 
vestments, defaulted  in  the  payment  of  any 
part  of  either  principal  or  interest  thereof. 

(3)  In  bonds  of  any  city,  county,  town  or 
Sch.  Dist.  of  this  State,  which  has  not  de- 
faulted in  the  payment  of  any  part  of  either 
principal  or  interest  thereof,  within  5 years 
previous  to  making  such  investments. 

(4)  In  the  1st  Mtg.  bonds  of  any  steam 

* “We  have  no  Sav.  Bank  Corps,  incorporated 
under  this  law  and  have  never  had  * * * but 
provision  is  made  under  Sec.  13,  so  that  any  State 
Bank,  any  B’k’g.  & Tr.  Co.,  or  any  Tr.  Co.,  incor- 
porated under  the  provisions  of  that  law,  may  es- 
tablish and  maintain  a ‘Sav.  Dept.’  entirely  sep- 
arate from  its  general  commercial  business,  upon 
the  plan  therein  outlined,  which  will  explain  why 
there  are  no  ‘Sav.  Banks’,  proper  in  this  State, 
because  the  same  end  can  be  reached  by  conduct- 
ing a ‘Sav.  Dept.’,  and  the  restrictions  are  not  so 
great.”  Commissioner  for  the  Dept,  of  Ins.  and 
B’k’g. 


6 


Savings  Banks. 


TEXAS. 


R.  R.,  the  income  of  which  is  sufficient  to  pay 
all  operating  expenses  and  fixed  charges,  which 
has  its  domicile  in  the  State. 

(5)  In  bonds  or  notes  secured  by  1st  Mtg. 
or  deed  of  trust  on  unincumbered  real  estate, 
worth  at  least  twice  the  amount  loaned  thereon. 
But  the  mortgage  investment  of  such  Corp. 
shall  not  exceed  60%  of  its  total  assets. 

(6)  In  real  estate  sufficient  to  reasonably 
furnish  a domicile  for  such  Corp.,  and  no  more. 

Sec.  18.  It  shall  be  the  duty  of  the  directors 
of  any  such  Savs.  bank,  as  soon  as  practicable, 
to  invest  such  fund  of  money,  by  purchase  or 
otherwise  in  the  securities  mentioned  in  Sec. 
17  of  this  act,  and  from  time  [to  time]  to  sell 
and  reinvest  the  proceeds  of  such  investments, 
but  for  the  purpose  of  meeting  current  de- 
mands and  expenses  in  excess  of  the  receipts 
any  of  the  securities  may  be  sold  or  pledged; 
and  there  shall  be  kept  an  available  cash  fund 
of  not  less  than  15%  of  the  whole  amount  of 
its  assets,  and  the  same  or  any  part  thereof 
may  be  kept  on  hand  or  on  deposit,  payable 
on  demand,  in  any  bank  or  banking  Asso.  of 
the  State  of  Tex.,  or  under  the  laws  of  the 
U.  S.,  approved  by  the  Supt.  of  Bkg.,  and  hav- 
ing a paid  up  capital  stock  of  $50,000,  or  more, 
but  the  deposits  in  any  one  bank  or  Tr.  Co. 
shall  not  exceed  20%  of  the  total  deposits, 
capital  and  surplus  of  such  Sav.  Bank. 

Sec.  20.  It  shall  be  lawful  for  any  Sav. 
Bank  to  purchase,  hold,  sell  and  convey  real 
estate,  as  follows : 

(1)  The  house  and  lot  on  which  is  the  domi- 
cile of  such  Corp.,  and  from  portions  of  which, 
not  required  for  its  own  use,  any  revenue  may 
be  derived,  not  to  exceed  in  value  20%  of  the 
capital  of  such  Asso. 

(2)  Such  as  shall  be  purchased  by  it  at  sales 
upon  foreclosure  of  Mtgs.  or  deeds  of  trust 
owned  by  such  Corps.,  or  upon  judgments  or 
decrees  rendered  for  debts  due  to  it,  or  pur- 
chased or  taken  in  settlement  to  secure  such 
debts,  and  all  such  interests  shall  be  sold  by 
such  Corp.  within  5 years  after  the  same  shall 
be  vested  in  it,  unless  the  Supt.  shall  extend 

7 


TEXAS. 


Savings  Banks. 


the  time  within  which  such  sale  shall  be  made. 
If  [No]  such  Corp.,  or  any  person  acting  in 
its  behalf,  shall  negotiate,  take  or  receive  a 
fee,  brokerage,  commission  or  gift  or  other 
consideration,  for  or  on  account  of  the  loan 
made  by  and  in  behalf  of  such  Corp.,  other 
than  appears  on  the  face  of  the  note  or  con- 
tract by  which  such  loan  purports  to  be  made. 
But  nothing  contained  herein  shall  apply  to 
any  reasonable  charges  for  services  in  the 
examination  of  title,  and  the  preparation  of 
conveyance  to  such  Corp.  as  security  for  its 
loan.  All  sums  paid  for  services,  fees,  or 
otherwise,  to  a member  of  the  board  of  direc- 
tors shall  be  reported  in  detail  at  each  regular 
meeting  of  the  directors.  All  applications  for 
loans  shall  be  made  in  writing  through  the 
treasurer  of  the  Corp.,  who  shall  keep  a rec- 
ord thereof,  showing  the  date,  name  of  appli- 
cant, amount  asked  for  and  security  offered, 
and  shall  cause  the  same  to  be  presented  to 
the  board  of  directors,  but  at  the  sale  of  said 
lands,  real  estate,  said  Corp.  shall  not  repur- 
chase said  real  estate  directly  or  indirectly ; 
nor  shall  any  officer,  director  or  person  hold- 
ing stock  in  said  Corp.  be  a purchaser  of  said 
real  estate  for  the  use  of  the  Corp. 

Sec.  22.  * * * no  director  or  officer  of  such 
Corp.  shall,  directly  or  indirectly  for  himself, 
or  as  an  agent  or  partner  of  others,  borrow 
any  of  the  funds  of  the  Corp.,  or  funds  in  its 
custody,  or  in  any  manner  use  the  same,  ex- 
cept to  make  necessary  current  payments  for 
the  Corps.,  or  to  make  investments,  or  to  de- 
posit for  safety,  under  the  direction  and  au- 
thority of  the  board  of  directors;  nor  shall 
any  director  or  officer  of  such  Corp.  be  an 
indorser  or  surety,  or  in  any  way  be  an  obligor 
for  moneys  loaned  by  or  borrowed  of  the 
Corp.  * * * 

See  also  Sec.  7 under  State  Banks  of  De- 
posit and  Discount. 


8 


I 


V 


» 


Savings  Banks. 


VERMONT. 


Municipal  Law  in  red.  Street  Railway  Law  in 
Railroad  Law  in  green.  Thrown. 

Other  matter  in  black. 

VERMONT. 

Corrected  to  and  including  1912-1913  Session. 

SAVINGS  BANKS. 

Sec.  8.  The  assets  of  banks  shall  be  in- 
vested as  follows : 

ist.  In  ist  Mtgs.  of  unencumbered  real  estate, 
not  to  exceed  in  each  case  60%  of  the  value  of 
such  real  estate,  if  located  in  Vt.,  and  not  to 
exceed  50%  of  the  value  of  such  real  estate 
if  located  elsewhere.  Not  less  than  i-6th  of 
the  amount  of  such  Mtgs.  shall  be  upon  real 
estate  in  this  state,  treating  Mtgs.  made  on 
lands  in  an  adjoining  state  within  20  miles  of 
the  Bk.  making  such  loan  as  Vt.  Mtg.  loans, 
and  not  more  than  80%  of  the  amount  of  the 
assets  shall  be  invested  in  Mtgs.  of  real 
estate;  Provided  that  not  exceeding  60%  of 
the  amount  of  such  assets  may  be  invested  in 
Mtgs.  of  real  estate  outside  of  this  state.  No 
investment  shall  be  made  on  Mtgs.  of  real 
estate  outside  of  Vt.  which  is  unimproved  and 
unproductive  and  the  amount  of  such  invest- 
ments on  Mtgs.  in  Vt.  shall  not  be  more  than 
40%  of  the  value  thereof.  No  Bk.  shall  loan 
to  any  person,  partnership,  association,  or 
corporation  upon  real  estate  Mtg.  (treating 
loans  to  the  individual  members  of  a partner- 
ship as  loans  to  the  partnership)  more  than 
$30,000,  and  in  addition  thereto  1%  of  the  de- 
posits of  such  Bk.  in  excess  of  $1,000,000.  No 
Mtg.  investment  shall  be  made  except  upon 
the  written  approval  of  at  least  3 trustees  of 
the  Bd.  of  Inv.,  who  shall  certify  in  writing 
according  to  their  best  judgment  the  value  of 
the  premises  mortgaged  or  to  be  mortgaged. 
At  the  expiration  of  every  Mtg.  loan  made  for 
a period  of  5 yrs  or  more,  such  loan  shall  not 
be  extended  or  renewed  unless  3 members  of 
the  Bd.  of  Inv.  certify  in  writing  the  value 
in  their  best  judgment  of  the  mortgaged  prem- 
ises and  unless  such  value  meets  the  require- 
ments above  prescribed. 


1 


VERMONT. 


Savings  Banks. 


When  buildings  are  included  in  the  valua- 
tion of  real  estate  upon  which  an  investment 
is  made,  they  shall  be  insured  by  the  mort- 
gagor in  such  Co.  as  the  trustees  or  Bd.  of 
Inv.  direct,  and  the  policies  of  Ins.  shall  be 
duly  assigned,  or  the  loss  made  payable  to 
such  Bk.,  and  such  Bk.  may  renew  such  policy 
of  Ins.  in  the  same  or  in  another  Co.,  as 
said  trustees  or  Bd.  of  Inv.  elect,  from  yr.  to 
yr.,  or  for  a longer  or  shorter  period,  if  the 
mortgagor  neglects  so  to  do;  and,  when  nec- 
essary, the  treasurer  may  sign  premium  notes, 
and  may  charge  the  amount  paid  for  such 
Ins.  to  the  mortgagor. 

2d.  (a)  In  the  public  funds  of  the  U.  S. 

or  any  of  the  states  or  the  Dist.  of  Col.  or 
in  public  funds  for  the  payment  of  principal 
and  interest  of  which  the  faith  of  the  U.  S. 
is  pledged. 

(b)  In  the  bonds  or  notes  of  counties,  cities, 
towns,  villages,  sch.  dists.  and  water  dists.  of 
the  New  Eng.  States  and  of  any  incorporated 
dist.  in  Vt.  having  the  right  to  levy  taxes  in 
payment  of  its  debt. 

(c)  In  the  bonds  or  notes  of  towns,  cities 
and  sch.  dists.,  having  a population  according 
to  the  last  preceding  U.  S.  or  state  census 
of  at  least  1,000  and  a debt  not  exceeding 
5%  of  the  last  preceding  valuation  for  the 
assessment  of  taxes  in  N.  Y.,  Penn.,  Ohio, 
Mich.,  111.,  Ind.,  Iowa,  Wis.  and  Minn. 

(d)  In  the  bonds  or  notes  of  towns,  cities 
and  sch.  dists.  having  a population  according 
to  the  last  preceding  U.  S.  or  state  census 
of  at  least  7,000  and  a debt  not  exceeding 
5%  of  the  last  preceding  valuation  for  the 
assessment  of  taxes  in  N.  J.,  Kans.,  Neb.,  N. 
D.,  S.  D.,  Mo.,  Ore.,  Wash,  and  Cali. 

(e)  In  the  bonds  of  counties  having  a popu- 
lation, according  to  the  last  preceding  U.  S. 
or  state  census,  of  at  least  50,000  and  a debt 
of  not  exceeding  3%  of  the  last  preceding 
valuation  for  the  assessment  of  taxes,  and  in 
the  bonds  or  notes  of  cities  and  sch.  dists. 
having  a population,  according  to  the  last 
preceding  U.  S.  or  state  census,  of  at  least 


I 


2 


Savings  Banks. 


VERMONT. 


50,000  and  a debt  not  exceeding  5%  of  the 
last  preceding  valuation  for  the  assessment  of 
taxes,  in  any  of  the  states  above  named  and 
in  Colo.,  Del.,  Geo.,  Md.,  Okl.,  Tex.,  Utah  and 
VV.  Va. 

(f)  In  the  bonds  or  notes  of  a city  in  any 
of  the  states  above  named  having  a popula- 
tion according  to  the  last  preceding  U.  S. 
or  state  census  of  at  least  100,000  and  a debt 
not  exceeding  7%  of  the  last  preceding  valu- 
ation for  the  assessment  of  taxes. 

(g)  In  the  bonds  or  notes  of  a city  in  any 
of  the  states  above  named  having  a population 
according  to  the  last  preceding  U.  S.  or  state 
census  of  at  least  200,000. 

In  subdivs.  (c)  and  (d)  the  word  “debt” 
shall  mean  the  gross  debt  less  debts  created 
in  anticipation  of  taxes  to  be  paid  within 
1 year  and  the  amount  of  any  sinking  funds 
available  for  the  payment  of  such  debt;  and 
in  subdivs.  (e)  and  (f)  the  word  “debt” 
shall  mean  the  gross  debt,  less  debts  created 
in  anticipation  of  taxes  to  be  paid  within  1 
year,  the  amount  of  any  sinking  funds  avail- 
able for  the  payment  of  such  debt  and  debts 
created  for  supplying  the  inhabitants  of  the 
municipality  with  water. 

The  foregoing  does  not  authorize  invest- 
ments in  R.  R.  aid  bonds  (except  such  as  are 
issued  by  municipalities  in  the  state  of  Vt.) 
or  in  bonds  which  are  not  direct  obligations 
of  a municipality  or  in  bonds  of  municipalities 
which  have  within  20  yrs.  repudiated  or  com- 
promised the  payment  of  any  debt  or  de- 
faulted for  more  than  90  days  in  the  payment 
of  any  debt,  and  the  purchase  of  such  securi- 
ties is  hereby  prohibited. 

3d.  (a)  In  the  notes  or  bonds  of  a R.  R. 
Corp.  incorporated  under  the  laws  of  Vt., 
irrespective  of  the  length  of  such  road,  or  the 
motive  power  thereof,  when  issued  in  accord- 
ance with  the  laws  of  this  state  and  in  compli- 
ance with  the  provisions  hereinafter  set  forth 
relating  to  bonds  of  New  Eng.  R.  Rs. 

(b)  In  the  bonds  or  assumed  bonds  of  a 
R.  R.  Corp.  incorporated  in  any  of  the  New 


3 


VERMONT. 


Savings  Banks. 


Eng.  States,  at  least  of  the  R.  R.  of  which 
is  located  in  said  states,  whether  such  cor- 
poration is  in  possession  of  and  is  operating 
its  own  road  or  is  leased  to  another  R.  R. 
Corp. ; Provided,  either  that  such  bonds  shall 
be  secured  by  a ist  Mtg.  of  the  whole  or  a 
part  of  the  R.  R.  and  R.  R.  property  of  such 
Corp.,  or  by  a refunding  Mtg.  as  described 
in  paragraphs  (3)  or  (4)  of  subdiv.  (g) 
or  that  if  the  R.  R.  and  R.  R.  property  of 
such  Corp.  are  unencumbered  by  Mtg.  such 
bonds  shall  be  issued  under  the  authority  of 
1 of  said  states  which  provides  by  law  that 
no  such  R.  R.  Corp.  which  has  issued  bonds 
shall  subsequently  execute  a Mtg.  upon  its 
road,  equipment  and  franchise,  or  upon  any 
of  its  real  or  personal  property,  without  in- 
cluding in  and  securing  by  such  Mtg.  all 
bonds  previously  issued  and  all  its  pre-exist- 
ing debts  and  liabilities,  which  provision,  so 
enacted  in  such  state,  shall  have  been  ac- 
cepted by  the  stockholders  of  such  corpora- 
tion ; and  provided,  that  such  corporation  has 
paid  in  dividends  in  cash  an  amount  equal 
to  not  less  than  4%  per  annum  on  all  its  out- 
standing issues  of  capital  stock  in  each  fiscal 
yr.  for  the  5 yrs  next  preceding  such  in- 
vestment. 

(c)  In  the  ist  Mtg.  bonds  or  assumed 
ist  Mtg.  bonds  or  in  the  bonds  secured'  by 
a refunding  Mtg.  as  described  in  paragraphs 
(3)  or  (4)  of  subdiv.  (g)  of  a R.  R.  Corp. 
incorporated  in  any  of  the  New  Eng.  States, 
the  R.  R.  of  which  is  located  wholly  or  in 
part  therein,  which  have  been  guaranteed  as 
to  principal  and  interest  by  a R.  R.  Corp., 
described  in  subdivs.  (a)  or  (b)  which  is  in 
possession  of  and  is  operating  its  own  road; 

(d)  No  bond  shall  be  made  a legal  invest- 
ment by  subdiv.  (b)  unless  the  Corp.  which 
issued  or  assumed  such  bond  has,  during  its 
fiscal  yr.  next  preceding  the  date  of  such 
investment,  paid  in  dividends  on  its  capital 
stock  an  amount  equal  to  J/Jrd  of  the  total 
amount  of  interest  paid  on  all  its  direct  and 
assumed  funded  debt. 


4 


Savings  Banks. 


VERMONT. 


No  bond  shall  be  made  a legal  investment 
by  subdiv.  (c)  unless  the  Corp.  which  guar- 
anteed such  bond  has,  during  its  fiscal  yr. 
next  preceding  such  investment,  paid  in  divi- 
dends on  its  capital  stock  an  amount  equal 
to  R$rd  of  the  total  amount  of  interest  paid 
on  all  its  direct,  assumed  and  guaranteed 
funded  debt. 

No  bond  shall  be  made  a legal  investment 
by  subdiv.  (b)  or  (c)  unless  the  Corp.  owns 
in  fee  not  less  than  ioo  miles  of  standard 
gauge  R.  R.  (exclusive  of  sidings)  within  the 
Tj  . S. 

(e)  In  the  Mtg.  bonds,  as  described  in  any 
of  the  following  subdivs.  of  this  clause,  of 
any  R.  R.  Corp.  incorporated  under  the  laws 
of  any  of  the  U.  S. : 

Provided,  that  during  each  of  the  10  fiscal 
yrs.  of  such  R.  R.  Corp.  next  preceding  the 
date  of  such  investment, — 

(1)  Such  R.  R.  Corp.  owned  in  fee  not 
less  than  500  miles  of  standard  gauge  R.  R., 
exclusive  of  sidings,  within  the  U.  S.,  or,  if 
such  Corp.  owned  in  fee  less  than  500  miles 
of  such  R.  R.,  the  gross  earnings  of  such 
Corp.,  reckoned  as  hereinafter  provided,  shall 
have  been  not  less  than  $15,000,000; 

(2)  Such  R.  R.  Corp.  shall  have  paid  the 
matured  principal  and  interest  of  all  its  Mtg. 
debt; 

.(3)  Such  R.  R.  Corp.  shall  have  paid  in 
dividends  in  cash  to  its  stockholders  an 
amount  equal  to  at  least  4%  upon  all  its  out- 
standing capital  stock; 

(4)  The  gross  earnings  from  the  operation 
of  the  property  of  such  R;  R.  Corp.,  includ- 
ing therein  the  gross  earnings  of  all  R.  Rs. 
leased  and  operated  or  controlled  and  oper- 
ated by  said  Corp.,  and  the  gross  earnings 
from  the  sale  of  coal  from  mines  owned  or 
controlled  by  it,  shall  not  have  been  less  in 
amount  than  5 times  the  amount  necessary 
to  pay  the  interest  payable  upon  its  entire  out- 
standing debt,  the  rentals  of  all  leased  lines, 
and  the  interest  on  all  the  outstanding  debt 
of  R.  Rs.  controlled  and  operated  which  is 


VEBMONT. 


Savings  Banks. 


not  owned  by  said  Corp.  after  deducting  from 
said  interest  and  rentals  interest  and  divi- 
dends received  from  the  stocks,  bonds  or 
notes  of  R.  R.  Corps,  not  operated  by  said 
Corp.,  which  have  been  deposited  with  a trus- 
tee as  the  only  security  to  secure  the  pay- 
ment of  bonds  or  notes  issued  by  said  Corp., 
but  not  in  excess  of  the  interest  on  said  last- 
named  bonds  or  notes; 

And  further  provided,  that, — 

(5)  No  bonds  shall  be  made  a legal  invest- 
ment by  subdiv.  (g)  in  case  the  Mtg.  secur- 
ing the  same  shall  authorize  a total  issue  of 
bonds  which,  together  with  all  outstanding 
prior  debts  of  the  issuing  or  assuming  Corp., 
including  all  bonds  not  issued  that  may  legally 
be  issued  under  any  of  its  prior  Mtgs.  or  of 
its  assumed  prior  Mtgs.,  after  deducting  there- 
from, in  case  of  a refunding  Mtg.,  the  bonds 
reserved  under  the  provisions  of  said  Mtg. 
to  retire  prior  lien  debts  at  maturity,  shall 
exceed  3 times  the  outstanding  capital  stock 
of  said  Corp.  at  the  date  of  such  investment; 

(6)  No  bonds  shall  be  made  a legal  invest- 
ment by  subdiv.  (i)  or  (j)  in  case  the  Mtg. 
securing  the  same  shall  authorize  a total  is- 
sue of  bonds  which,  added  to  the  total  debt 
of  the  guaranteeing  Corp.  as  defined  in  para- 
graph 5,  including  . therein  the  authorized 
amount  of  all  previously  guaranteed  bonds 
issues,  shall  exceed  3 times  the  capital  stock 
of  such  guaranteeing  Corp.  outstanding  at  the 
date  of  such  investment;  nor  in  case  at  said 
date  the  total  debt  of  the  Corp.  which  issued 
said  bonds  shall  exceed  3 times  its  outstand- 
ing capital  stock; 

In  the  case  of  a Mtg.  executed  prior  to  the 
passage  of  this  act^  under  which  the  total 
amount  of  bonds  which  may  be  issued  is  not 
specifically  stated,  the  amount  of  bonds  out- 
standing thereunder  at  the  date  of  such  in- 
vestment shall  be  considered,  for  the  pur- 
poses of  paragraph  5 and  of  this  paragraph, 
as  the  total  authorized  issue. 

(f)  Whenever  the  term  “ first  mortgage  ” 
is  used  in  the  following  subdivs.,  it  shall 


Savings  Banks. 


VERMONT. 


mean,  unless  otherwise  qualified,  a ist  Mtg. 
on  not  less  than  75%  of  the  R.  R.  owned  in 
fee  at  the  date  of  the  Mtg.  by  the  R.  R.  Corp, 
on  the  R.  R.  of  which  said  mortgage  is  a 
lien,  but  in  no  case  on  less  than  100  continu- 
ous miles  of  standard  gauge  R.  R.,  exclusive 
of  sidings;  Provided,  that, — 

75%  of  the  R.  R.  subject  to  the  lien  of 
said  Mtg.  is  connected; 

For  5 yrs  prior  to  the  date  of  investment 
therein  all  the  R.  R.  subject  to  the  lien  of 
said  Mtg.  at  the  date  of  execution  thereof  has 
been  operated  by,  and  its  operations  included 
in,  the  operations  of  the  R.  R.  Corp.  which 
issues,  assumes  or  guarantees  said  bonds ; # 

The  date  of  said  Mtg.  is  at  least  5 yrs.  prior 
to  the  date  of  such  investment;  except  that  a 
ist  Mtg.  given  in  substitution  for  and  not 
greater  in  amount  than  such  a 1st  Mtg.,  and 
covering  the  same  R.  R.  property,  shall  be 
considered  to  be  in  accordance  with  this  re- 
quirement. 

(g)  Bonds  issued  or  assumed  by  a R.  R. 
Corp.  described  in  subdiv.  (e)  which  are  se- 
cured by  a Mtg.  which  was  at  the  date  thereof 
or  is  at  the  date  of  such  investment: 

(1)  A ist  Mtg.  on  a R.  R.  owned  in  fee 
by  the  Corp.  issuing  or  assuming  said  bonds 
except  that,  if  it  is  not  a ist  Mtg.  on  75% 
of  all  such  R.  R,  owned  in  fee  by  said  Corp., 
it  shall  be  a ist  Mtg.  on  at  least  75%  of  the 
R,  R.  subject  to  the  lien  of  said  Mtg.  at  the 
date  thereof;  but  if  any  stocks  or  bonds  are 
deposited  with  the  trustee  of  said  Mtg.  as 
part  security  therefor,  representing  or  cover- 
ing  R.  R.  mileage  not  owned  in  fee,  the  bonds 
secured  by  said  Mtg.  shall  not  become  legal 
investments  unless  said  Corp.  owns  in  fee 
at  least  75%  of  the  total  mileage  which  is  sub- 
ject to  the  lien  of  said  Mtg.  and  which  is  rep- 
resented or  covered  by  said  stocks  or  bonds; 

(2)  A ist  Mtg.,  or  a Mtg.  or  trust  inden- 
ture which  is  in  effect  a ist  Mtg.  upon  all  the 
R.  R.  subject  to  the  lien  of  said  Mtg.  or  trust 
indenture  by  virtue  of  the  irrevocable  pledge 
with  the  trustee  thereof  of  an  entire  issue 


7 


VERMONT. 


Savings  Banks. 


or  issues  of  bonds  which  are  a 1st  lien,  upon 
the  R.  R.  of  a R.  R.  Corp.  which  is  owned 
and  operated,  controlled  and  operated  or  leased 
and  operated  by  the  Corp.  issuing  or  assum- 
ing said  bonds; 

(3)  A refunding  Mtg.  which  covers  at  least 
75%  of  the  R.  R.  owned  in  fee  by  said  Corp. 
at  the  date  of  said  Mtg.  and  provides  for 
the  retirement  of  all  outstanding  Mtg.  debts 
which  are  a prior  lien  upon  said  R.  R.  owned 
in  fee  and  covered  by  said  refunding  Mtg. 
at  the  date  thereof;  but  if  any  of  the  bonds 
which  said  refunding  Mtg.  is  given  to  refund 
are  secured  on  a R.  R.  not  owned  in  fee  by 
the  Corp.  executing  said  refunding  Mtg., 
there  shall  be  conveyed  and  assigned  to  the 
trustee  of  said  refunding  Mtg«  either 

At  least  75%  of  the  R.  R.  on  which  each 
issue  of  bonds  to  be  refunded  is  secured, 
free  from  any  Mtg.  lien  except  that  of  the 
Mtg.  or  Mtgs.  securing  the  bonds  to  be  re- 
funded, or 

At  least  75%  of  the  outstanding  bonds  of 
each  issue  which  is  secured  by  a Mtg.  lien 
upon  such  R.  R. ; and  all  of  said  R.  R.  not 
owned  in  fee  which  is  so  subjected  to  the  lien 
of  said  refunding  Mtg.  shall  be  the  R.  R.  of 
one  or  more  R.  R.  Corps,  which  are  owned 
and  operated,  controlled  and  operated,  or 
leased  and  operated  by  the  Corp.  issuing  or 
assuming  said  refunding  Mtg.  bonds;  but  in 
no  case  shall  the  bonds  secured  by  said  refund- 
ing Mtg.  become  a legal  investment  unless 
they  mature  at  a later  date  than  any  bonds 
which  said  refunding  Mtg.  is  given  to  refund, 
nor  unless  the  total  mileage  subjected  to  the 
lien  of  said  refunding  Mtg.  in  accordance 
with  the  requirements  of  this  paragraph  is 
at  least  25%  greater  than  the  mileage  cov- 
ered by  any  1 of  the  Mtgs.  securing  bonds 
which  said  refunding  Mtg.  is  given  to  refund. 

(4)  A Mtg.  upon  not  less  than  10%  of  the 
R.  R.  exclusive  of  sidings,  owned  in  fee  at 
the  date  of  said  Mtg.  by  the  corporation  issu- 
ing or  assuming  said  bonds,  but  in  no  case 


Savings  Banks. 


VERMONT. 


on  less  than  500  continuous  miles  of  standard 
gauge  R.  R. : Provided,  that,-— 

Said  Mtg.  is  a 1st  or  2d  lien  upon  not  less 
than  75%  of  the  total  R.  R.  covered  by  said 
Mtg.  at  the  date  thereof,  and  which  pro- 
vides for  the  retirement  of  all  Mtg.  debts 
which  are  a prior  lien  upon  said  R.  R.  owned 
in  fee  and  covered  by  said  Mtg.,  at  the  date 
of  the  execution  thereof; 

The  bonds  secured  by  said  Mtg.  mature  at 
a later  date  than,  and  cover  a mileage  at  least 
25%  greater  than  is  covered  by,  any  of 
the  bonds  secured  by  a prior  lien  Mtg.  so  to  be 
retired; 

The  date  of  said  Mtg.  shall  be  at  least  5 yrs. 
prior  to  the  date  of  such  investment. 

(h)  Mtg.  bonds  or  bonds  secured  by  Mtg. 
bonds  which  are  a direct  obligation  of,  or 
which  have  been  assumed,  or  which  have  been 
guaranteed  by  endorsement  as  to  both  princi- 
pal and  interest,  by  a R.  R.  Corp  whose 
refunding  Mtg.  bonds  are  made  a legal  in- 
vestment under  paragraphs  (3)  or  (4)  of 
subdiv.  (g)  : Provided,  that: 

Said  bonds  are  prior  to  and  are  to  be  re- 
funded by  such  refunding  Mtg.; 

Said  refunding  Mtg.  covers  all  the  real  prop- 
erty upon  which  the^  Mtg.  securing  said  un- 
derlying bonds  is  a lien ; 

In  the  case  of  bonds  so  guaranteed  or  as- 
sumed the  Corp.  issuing  said  bonds  is  owned 
and  operated,  controlled  and  operated,  or 

leased  and  operated,  by  said  R.  R.  Corp. 

(i)  Bonds  which  have  been  guaranteed  by 
endorsement  as  to  both  principal  and  interest 
by  a R.  R.  Corp.  which  has  complied  with  all 
the  provisions  of  subdiv.  (e)  : Provided,  that, — 

Said  bonds  are  secured  by  a 1st  Mtg.  on 
the  R.  R.  of  a R.  R.  Corp.  which  is  owned 
and  operated,  controlled  and  operated,  or 

leased  and  operated,  by  the  Corp.  guaranteeing 
said  bonds; 

In  the  case  of  a leased  R.  R.,  the  entire 
capital  stock  of  which,  except  shares  quali- 
fying directors,  is  not  owned  by  the  lessee, 
the  rental  includes  an  amount  to  be  paid  to 


9 


Savings  Banks. 


the  stockholders  of  said  leased  R.  R.  equal 
to  at  least  4%  per  annum  upon  that  portion 
of  the  entire  capital  stock  thereof  outstanding 
which  is  not  owned  by  the  lessee. 

(j)  1st  Mtg.  bonds  of  a R.  R.  Corp.  which 
during  each  of  its  10  fiscal  yrs.  next  preced- 
ing the  date  of  such  investment,  has  complied 
with  all  the  requirements  of  paragraphs  (2), 
(3)  and  (4)  of  subdiv.  (e)  Provided  that  said 
bonds  are  guaranteed  by  endorsement  as  to 
both  principal  and  interest  by  a R.  R.  Corp. 
which  has  complied  with  all  the  requirements 
of  subdiv.  (e)  preceding  paragraph  (5),  not- 
withstanding that  the  R.  R.  of  said  issuing 
Corp.  is  not  operated  by  said  guaranteeing 
Corp. 

(k)  Bonds  which  have  been  or  shall  become 
legal  investments  under  any  of  the  provisions 
of  this  act  shall  not  be  rendered  illegal  al- 
though the  Corp.  issuing,  assuming  or  guar- 
anteeing such  bonds  shall  fail  for  a period 
not  exceeding  2 successive  fiscal  yrs.  to  com- 
ply with  the  requirements  of  paragraph  (4) 
of  subdiv.  (e)  ; but  no  further  investment  in 
the  bonds  issued,  assumed  or  guaranteed  by 
said  Corp.  shall  be  made  during  said  period. 
If,  after  the  expiration  of  said  period,  said 
Corp.  complies  for  the  following  fiscal  yr. 
with  all  the  requirements  of  subdiv.  (e),  it 
shall  be  regarded  as  having  complied  there- 
with during  said  period. 

(l)  Bonds  which  have  been  or  shall  become 
legal  investments  under  any  of  the  provisions 
of  this  act  shall  not  be  rendered  illegal,  al- 
though the  property  upon  which  they  ar^  se- 
cured has  been  or  shall  be  conveyed  to  or 
legally  acquired  by  another  R.  R.  Corp.,  and 
although  the  Corp.  which  issued  or  assumed 
said  bonds  has  been  or  shall  be  consolidated 
with  another  R.  R.  Corp.,  if  the  consolidated 
or  purchasing  Corp.  shall  assume  the  payment 
of  said  bonds  and  so  long  as^  it  shall  continue 
to  pay  regularly  interest  or  dividends,  or  both, 
upon  the  securities  issued  against,  in  ex- 
change for,  or  to  acquire  the  stock  of  the 
Corp,  consolidated,  or  the  property  purchased, 


Savings  Banks. 


VERMONT. 


or  upon  securities  subsequently  issued  in  ex- 
change or  substitution  therefor,  to  an  amount 
at  least  equal  to  4%  per  annum  upon  the  capi- 
tal stock,  outstanding  at  the  time  of  such 
consolidation  or  purchase,  of  said  Corp.  which 
issued  or  assumed  said  bonds. 

(m)  If  a R.  R.  Corp.  which  has  complied 
with  all  the  requirements  of  subdiv.  (e)  pre- 
ceding paragraph  5,  except  that  the  period 
of  compliance  is  less  than  10,  but  not  less 
than  5 successive  yrs.,  shall  be,  or  shall  have 
been,  thereupon  consolidated  or  merged  with, 
or  its  R.  R.  purchased  and  all  of  the  debts 
of  such  Corp.  assumed  by,  another  R.  R. 
Corp.  incorporated  under  the  laws  of  any  of 
the  U.  S.,  such  Corp.  so  succeeding  shall  be 
considered  as  having  complied  with  all  the 
provisions  of  subdiv.  (e)  preceding  paragraph 
5 during  those  successive  yrs.  next  preceding 
the  date  of  such  consolidation,  merger  or 
purchase  in  which  all  said  consolidated,  merged 
or  purchased  Corps.,  if  considered  as  1 con- 
tinuous Corp.  in  ownership  and  possession, 
would  have  so  complied:  Provided,  that  said 
succeeding  Corp.  shall  continue  so  to  comply 
for  a further  period  which  shall  make  such 
compliance  equivalent  to  at  least  10  succes- 
sive vrs.,  but  which  shall  be  in  no  case  less 
than  the  2 fiscal  yrs.  next  following  said  con- 
solidation, merger  or  purchase. 

4th.  (a)  In  the  stock  of  any  Nat.  Bk.  in 
the  New  Eng.  States  and  the  State  of  N.  Y. ; 
in  the  stock  of  any  Banking  Asso.  or  Tr.  Co. 
incorporated  under  the  authority  of  and  lo- 
cated in  this  state;  but  no  Bk.  shall  hold  Bk. 
stock  both  by  way  of  investment  and  as  se- 
curity for  loans  in  excess  of  10%  of  its  de- 
posits, nor,  in  any  1 Bk.,  more  than  5%  of 
its  deposits  or  more  than  $35,000,  or  more 
than  10%  of  the  capital  stock  of  any  1 Bk. 

5th.  In  loans  or  renewals  of  loans  of  the 
class  hereinafter  described,  payable  and  to 
be  paid  or  renewed  at  a time  not  exceeding  1 
yr.  from  the  date  thereof,  but  not  more  than 
J^rd  of  the  assets  of  a Bk.  shall  be  so  in- 


11 


VERMONT. 


Savings  Banks. 


vested ; nor  shall  a Bk.  loan  to  any  person, 
partnership,  association  or  corporation  upon 
personal  security  (treating  loans  to  the  in- 
dividual members  of  a partnership  as  loans  to 
the  partnership)  more  than  $10,000  until  a 
Bk’s  deposits  amount  to  $1,000,000,  after 
which  the  sums  so  loaned  may  be  increased 
1%  of  the  deposits  in  excess  of  $1,000,000 
up  to,  but  not  exceeding,  $50,000,  or  (in  cases 
where  10%  of  the  capital  and  surplus  exceed 
$50,000)  up  to,  but  not  exceeding  10%  of 
the  capital,  if  any,  and  surplus ; but  this 
limitation  shall  not  apply  to  the  purchase  of 
municipal  or  R R bonds,  or  to  notes  with 
such  bonds  as  collateral. 

(a)  A note  bearing  as  makers,  sureties  or 
endorsers  the  signatures  of  at  least  2 ap- 
proved names  of  residents  of  this  state,  or 
of  persons  who  reside  within  50  miles  of  the 
Bk.  making  the  loan. 

(b)  A note  or  accepted  draft  given  by  in- 
dividuals, firms  or  corporations  residing  with- 
out the  state,  for  goods  manufactured  within 
the  state  and  payable  to  individuals,  firms  or 
corporations  located  within  the  state  and  en- 
dorsed by  at  least  1 responsible  citizen  of  the 
state. 

(c)  A note  of  a corporation  incorporated 
by  this  state  with  1 or  more  substantial  sure- 
ties resident  in  the  state. 

(d)  A note  of  a responsible  borrower  with 
a pledge  as  collateral,  in  such  form  as  the 
Bk.  Commissioner  shall  approve  of. 

(1)  1 or  more  1st  Mtgs.  of  real  estate  such 
as  might  be  lawfully  purchased  by  a Bk.,  as 
in  cases  of  Mtgs.  bought  by  the  Bk.,  and  that 
the  amount  of  such  note  is  not  in  excess  of 
the  amount  which  the  Bk.  might  loan  on  a 
note  secured  by  Mtg.  on  said  land. 

(2)  Municipal  bonds  in  which  the  Bk. 
might  legally  invest  at  no  more  than  90% 
of  their  market  value;  R.  R.  bonds  in  which 
the  Bk.  might  legally  invest  at  no  more  than 
80%  of  tlieir  market  value;  and  Bk.  stocks 


12 


Savings  Banks. 


VERMONT. 


in  which  the  Bk.  might  legally  invest  at  no 
more  than  80%  of  their  market  value. 

(3)  Deposit  books  or  certificates  of  depos- 
it of  depositors  in  Bks.  of  this  state,  includ- 
ing Nat.  Bks.,  at  their  full  value  and  in  banks 
of  any  of  the  New  Eng.  States  and  of  N.  Y., 
under  state  or  federal  supervision,  at  no 
more  than  90%  of  the  amount  of  deposits 
therein  shown,  provided  written  notice  of 
such  assignments  has  been  given  to  the  Bk. 
carrying  the  deposit. 

6th.  5%  of  the  deposits  of  a Bk.  may  be 
invested  in  the  purchase  of  a suitable  building 
for  the  convenient  transaction  of  its  business, 
or  a site  therefor  and  the  erection  or  repairs 
of  a building  thereon,  from  portions  of  which 
not  required  for  its  use  a revenue  may  be 
derived. 

7th.  A Bk.  may  hold  real  estate  acquired  by 
the  foreclosure  of  a Mtg.  thereon,  owned  by 
or  pledged  to  such  Corp.,  or  by  purchase 
at  sales  made  under  the  provisions  of  such 
Mtg.,  or  upon  judgment  for  debts  due,  or 
in  settlements  effected  to  secure  such  debts; 
and  such  real  estate  shall  be  sold  by  such  Corp. 
as  soon  as  a reasonable  price  can  be  obtained 
therefor  and  within  5 yrs.  after  the  same 
is  vested  in  such  Corp.,  except  when  a ma- 
jority of  the  trustees  of  such  Corp.  shall 
make  application  in  writing  to  the  Bk.  Com- 
missioner, stating  that,  in  their  opinion,  the 
interests  of  such  Corp.  require  that  such  real 
estate  be  held  for  a longer  period  than  5 
yrs.;  in  which  event,  said  Commissioner  may 
extend  the  time  of  holding  such  real  estate 
not  to  exceed  5 yrs. 

8th.  A Bk.  may  hold  stocks,  bonds,  notes 
or  other  securities  not  the  subject  of  legal 
investment,  acquired  in  settlements  effected  to 
secure  or  adjust  loans;  but  unless  the  length 
of  time  such  securities  may  be  held  is  ex- 
tended, as  provided  in  the  preceding  clause, 
they  shall  be  sold  within  5 yrs.  after  being 
acquired. 

Sec.  33.  * * * * 2-5ths  of  such  reserve  may 
be  in  U.  S.  or  state  bonds  or  in  the  bonds 


13 


VERMONT. 


Trust  Companies. 


of  any  city  of  the  U.  S.  of  at  least  200,000 
inhabitants  according  to  the  last  preceding 
U.  S.  census. 

No  new  loans  may  be  made  when  a bank’s 
reserve  is  not  in  accord  with  the  require- 
ments of  this  section. 

Sec.  54.  Nothing  in  this  act  shall  affect 
the  legality  of  investments  heretofore  made 
or  of  transactions  heretofore  had,  pursuant 
to  the  law  in  force  when  such  investments 
were  made  or  transactions  had,  but  the 
change  of  such  investments  for  those  named 
in  this  Chap,  shall  be  made  gradually  by 
the  sale  or  redemption  of  the  securities  so 
invested,  in  such  manner  as  to  prevent  loss  or 
embarrassment  in  the  business  of  such  Corp., 
and  unnecessary  loss  or  injury  to  the  borrow- 
ers upon  such  securities. 

Sec.  60.  A trustee  or  officer  of  a Sav. 
Bk.  shall  not,  directly  or  indirectly,  either 
for  himself  or  as  the  partner  of  others,  bor- 
row or  use  its  funds  or  deposits,  or  sign 
any  note,  as  surety,  upon  which  any  of  such 
deposits  are  loaned. 

TRUST  COMPANIES. 

Sec.  71.  No  loan  shall  be  made  to  an  officer, 
director  or  employee  of  any  Tr.  Co.  without 
the  written  consent  of  a majority  of  the  di- 
rectors ; and  such  loan  shall  not  at  any  one 
time,  directly  or  indirectly,  exceed  5%  of  the 
capital  stock  actually  paid  in,  but  the  dis- 
count of  bona  fide  bills  of  exchange  drawn 
against  existing  values,  and  the  discount  of 
commercial  or  business  paper  actually  owned 
by  such  director,  officer  or  employee  negotiat- 
ing the  same  to  an  amount  not  exceeding 
$10,000  or  a loan  upon  the  pledge  of  any 
of  the  securities  which  are  legal  investments 
and  subject  to  the  restrictions  thereof  to  an 
amount  not  exceeding  the  same  sum,  shall 
not  be  prohibited  by  this  section.  No  loan 
shall  be  made  by  such  Corp.  upon  its  own 
stock  as  collateral. 

Everything  under  Savings  Banks,  with  the 
exception  of  Sec.  60,  also  applies  to  Trust  Cos. 


LIST  OF  RAILROAD  BONDS, 
LEGAL  INVESTMENTS 


FOR 

VERMONT  STATE  BANKS 
March  i,  1913, 


The  following  is  a list  of  railroad  bonds 
which,  in  the  opinion  of  the  Banking  Depart- 
ment, are  now  legal  investments  under  the  pro- 
vision of  section  8 of  Act  No.  158  of  the  Ses- 
sion Laws  of  1910,  and  Act  No.  167  of  the 
Session  Laws  of  1912, 


1 


VERMONT. 


ATCHISON,  TOPEKA  & SANTA  EE  RY. 


Atch.,  Top.  & S.  Fe  Ry.  . 
do  East.  Old. 

do  Trans.  Sh.  Line  . 
Chi.  & St.  Louis  Ry  . . 
Chi.,  S,  Fe  & Cali.  Ry.  . 
Hutchinson  Southern  Ry. 
San  F.  & San  Joa.  V.  Ry. 


Gen. 


1st 

1st 

ist 

1st 

ist 


4s 

4s 

4s 

6s 

5s 

5s 

5s 


1995 

1928 

1958 

1915 

1937 

1928 

1940 


i 


BALTIMORE  & OHIO  SYSTEM 


Baltimore  & Ohio  R.R.  . 

Ext. 

4S 

1935 

do  ...... 

.Prior  Lien  3^s 

1925 

do  

4s 

1948 

do  

. S.W.  Div.  3l4s 

1925 

BOSTON  & MAINE  SYSTEM 

Ports.,  G.  F.  & Con.  R.R. 

4/4  s 

1937 

Conn.  & Pass.  Rivs.  R.R. 

4s 

1943 

Concord  & Montreal  R.R. 

. Con. 

4s 

1920 

St.  J.  & Lk.  Champ.  R.R. 

ist 

5s 

1944 

Wor.,  Nash.  & Roch.  R.  R.  ist 

4S 

1930 

do  

ist 

4s 

1913 

do  

ist 

4s 

1934 

do  

4S 

1935 

CENTRAL  OF  NEW 

JERSEY 

SYSTEM 

Cent.  R.R.ofN.J.  . . . 

. Gen. 

5s 

1987 

CHICAGO  & NORTHWESTERN  SYSTEM 


Chicago  & North w'n  Ry.  . 

do  Sinking  Fund  . 

do  “ 

Cr  Rap.  & Mo.  Riv.  R.R.  . 

Northw’n  Union  Ry.  . . . 

Mil.,  Lk.  Sh.&West'nRy.  . 
do  Marshfield  Ext. 

do  Michigan  Div.  . 

do  Ashland  Div.  . 

do  Ext.  & Imp.  . . 

Wis.  Northern  R.R.  . . . 

Winona  & St.  Peter  R.R.  . 

M inn.  & Iowa  Ry.  . . . . 

Princet’n  & Northw'n  Ry.  . 

Fre.,  Elk  & Mo.  Val.  R.  R. 

Iowa,  Minn.  & No’w’n  Ry.  . 

Sioux  City  & Pac.  R.R.  . . 

Manitowoc,  G.B.&N.W.Rv. 


Gen.  4s 

& 3l/2S 

Con. 

7 s 

Ext. 

4s 

Mort. 

7s 

ist 

7 s 

Con. 

6s 

1st 

5s 

ist 

6s 

ist 

6s 

Mort. 

5s 

1st 

4S 

ist 

7s 

ist 

354  s 

1st 

354s 

Con. 

6s 

ist 

354s 

ist 

354s 

ist 

354s 

1987 

1915 

1926 

1916 

1917 

1921 

1922 

1924 

1925 
1929 
1931 
1916 
1924 

1926 
1933 

1935 

1936 

1941 


« 


2 


VERMONT. 


CHICAGO,  BUR.  & QUINCY  SYSTEM 


Chi.,  Bur.  & Quincy  R.R. 

. Gen. 

4s 

1958 

do  Illinois  Div.1 

Mort.  3^s  & 4s 

1949 

do  Iowa  Div. 

Mort.  4s  & 

5s 

1919 

do  Denver  Ext. 

4S 

1922 

do  Nebraska  Ext 

. . Mort. 

4s 

1927 

B.  & M.  Riv.  R.R.  in  Neb. 

. Con. 

6s 

1918 

Republican  Val.  R.R.  . . 

. Mort. 

6s 

1919 

Tarkio  Val.  R.R.  . . . 

ist 

7s 

1920 

Nodaway  Val.  R.R.  . . 

ist 

7s 

1920 

CHICAGO,  MIL.  & ST.  PAUL  SYSTEM 


Chi.,  Mil.  & St.  Paul  Ry.  Gen.  3J/2S 

& 4s 

1989 

do 

La  C.  & D.  Div.  . 

ist  ■ 

5s 

1919 

do 

Dubuque  Div.  . 

ist 

6s 

1920 

do 

Wis.Val.  Div.  . 

ist 

6s 

1920 

do 

Chi.  & P.W.Div. 

ist 

5s 

1921 

do 

Wis.  & M.  Div.  . 

1st 

5s 

1921 

do 

Chi.  & L.  S.  Div. 

ist 

5s 

1921 

do 

Chi.  & Mo.  Riv. 

Div.  . . 

ist 

5s 

1926 

do 

Terminal  . . . 

1st 

5s 

1914 

Dak.  & Gt.  Southern  Ry. 

ist 

5s 

1916 

Fargo  & Southern  Ry.  . . 

1st 

6s 

1924 

Mil.  & North’n  Railroad 

Ext. 

4^s  1913 

CHICAGO,  ROCK  ISLAND  & 

PACIFIC 

SYSTEM 

Chi.,  Rock  I’d  & Pac.  R.R.  . 

Mort. 

6s 

1917 

do 

do  Ry.  . 

Gen. 

4s 

1988 

CHICAGO.  ST.  PAUL,  MINNEAPOLIS 
& OMAHA  SYSTEM 


Chi.,  St.  P.,  M.  & 0.  Ry. 

Con.  3 V3S  & 6s 

1930 

Chi.,  St.  Paul  & Minn.  Ry. 

_ ist 

6s 

1918 

North  Wisconsin  Ry. 

TSt 

6s 

1930 

St.  Paul  & S’x  City  R.R. 

ISt 

6s 

1919 

DELAWARE  & HUDSON  SYSTEM 

Delaware  Sr  Hudson  Co.  . ist  Ref.  4s  1943 

do  do  Canal  Co.  ist  7s  1917 

Adirondack  Rv ist  4l/is  1942 

Sch’tady  & DuanVpr  R.R.  . ist  6s  1924 

Albany  & Susqueh’a  R.R.  . Convt’ble  3L2S  T946 


3 


VERMONT. 


GREAT  NORTHERN  SYSTEM 


Great  Northern  Ry  . . .ist  & Ref. 


St.  Paul,  Minn.  & M.  Ry.  . Con. 

do  Con. 

do  Con. 

do  Montana  Ext.  . 
do  Pacific  Ext.  . . 

East’n  Ry.  of  Minn.,  N'n  Div. 
Montana  Central  Ry.  . . jst 

do  1st 

Wilmar  & Sioux  Falls  Ry.  ist 

Spok'e  Falls  & North’n  Ry.  ist 

Minneapolis  Union  Ry.  . ist 

do  ....!.  . ist 


4*4  s 

1961 

4s 

1933 

4/2S 

1933 

6s 

1933 

4s 

1937 

4s 

1940 

4s 

1948 

5s 

1937 

6s 

1937 

5s 

1938 

6s 

1939 

6s 

1922 

5s 

1922 

3 s 
4S 


1951 

1951 


ILLINOIS  CENTRAL  SYSTEM 

Illinois  Central  R.R.  . . .Ref.  Mort.  4s  1955 
do  Sterling  Ext’d  . 4s  1951 

do  Gold  Extended  . 3L2S  1950 

do  Sterling  . . . 

do  Gold  .... 

do  Gold  .... 

do  Gold  Extended  . 

do  Springfield  Div.  1st 

do  K.&S.W.R.R.  ist 

Cairo  Bridge  . ist 

do  St.  Louis  Div.  .ist  3s  & 

do  Purch’d  Lines  . ist 

do  Collat’l  Trust  . ist 


3j/2S  1951 
3/^s  1951 
3V2  s 1951 
5s  1921 
4s  1950 
3V2  s 1951 
3t/2s  1952 
3^s  1950 


LAKE  SHORE  & MICHIGAN 
SOUTHERN  SYSTEM 

L’ke  Sh.  & Mich.  So.  Ry.  . ist  Gen.  3J/2S  1997 


LOUISVILLE  & NASHVILLE  SYSTEM 

1940 
1930 
*937 
i93t 


Louisv'e  & Nashv'e  R.R.  . 

Unified 

4s 

do  

Gen. 

6s 

do 

ist 

5s 

do  

Trust 

5s 

Evan.,  Hend.  & Nash.  Div. 

Sink.  F'd 

6 s 

Louis.  Cin.  & Lex.  Ry. 
Southeast  & St.  Louis  Div.  . 
Mobile  & Montgomery  . . 

Gen. 

4L£s 

6s 

4r/Ss 

New  Or.&M. Div., $5, 000,000 

ist 

6s 

Pensacola  & Atlantic  R.  R. 

ist 

6s 

Nash.,  Flor.  & Sheffield  Ry. 

ist 

ss 

1921 

1945 

1930 

1921 

1937 


VERMONT. 


MAINE  CENTRAL  SYSTEM 


Maine  Central  Railroad 
Maine  Central  R.  R.  . 
Maine  Shore  Line  R.R.  . 
Pen.  Shore  Line  R.R. 
Portland  Terminal  Co. 
Port’d  & Ogdens’g  Ry.  . 

Somerset  Ry 

do  

Washington  County  Ry. 


Col.  Tr’st 

5s 

1923 

Ref,  Mort. 

1961 

6s 

1923 

4s 

1920 

ist 

4s 

1961 

4lAs 

1928 

ist 

5s 

1917 

' Ref. 

4s 

1955 

ist 

3'A  s 

1954 

MICHIGAN  CENTRAL  SYSTEM 


Michigan  Cent.  R1R 

ist 

3'A  s 

1952 

Mich.C. — Mich.  Air  Line 
R.R 

ist 

4s 

1940 

Mich.  C. — Det.  & B.  C.  R.R. 

ist 

5 s 

1931 

Mich.  C. — Jack.  L.  & Sag. 
R.R 

ist 

3'A  s 

1951 

NEW  YORK  CENTRAL  SYSTEM 

N.  Y.  C.  & Hud.  Riv.  R.R.  . 

Mort. 

3xAs 

1997 

Beecti  Creek  R.R.  .... 

ist 

4S 

1936 

Mohawk  & Malone  Ry.  . . 

ist 

4s 

1 99  * 

B.  & A.  Railroad  .... 

Plain 

3V2S 

1952 

do  

Plain 

4s 

T9T3 

do  

Plain 

i’/lS 

1951 

do  . 

Plain 

4s 

1933 

do  . 

Plain 

4s 

1934 

do  

Plain 

4s 

1935 

do  

Plain 

4t/2S 

1937 

NEW  YORK,  NEW  HAVEN  & 
HARTFORD  SYSTEM 


N.  Y.,  Prov.  & Bos.  R.R.  . 

4s 

1942 

Housatonic  Railroad  . . . 

Con. 

5 s 

1937 

Danbury  & Norwalk  R.R. 

Con. 

6s 

1920 

do  

Con. 

5s 

1920 

Prov.  & Springfield  R.R. 

rst 

5s  - 

1922 

New  IT.  & Derby  R.R. 

Corl. 

5s 

1918 

N.  H.  & North’pton  R.  R. 

Ref.  Con. 

4s 

1956 

Naugatuck  Railroad  . . . 

ist 

4s 

1954 

Providence  Term.  Co.  . . 

ist 

4s 

1956 

n 


NEW  YORK,  NEW  HAVEN  & 
HARTFORD  SYSTEM  — Concluded 


Pawtuxet  Val.  R.R.  . . . 

1st 

4s 

1925 

Bos.  & N.  Y.  Air  Line  R.R. 

1st 

4S 

1955 

New  England  Railroad  . . 

Con. 

4s 

1945 

do  

Con. 

53 

1945 

Old  Colony  Railroad  . . . 

43 

1938 

do  

4s 

1924 

do  

4s 

1925 

do  

3lAs 

1932 

NORTHERN  PACIFIC  RWY. 

CO. 

Northern  Pacific  Ry.  . . 

Prior  Lien 

4s 

1997 

St.  Paul  & North.  Pac.  Ry. 

6s 

1923 

St.  Paul  & Duluth  R.  R.  . 

1st 

5s 

I93J 

Wash.  & Columb.  Riv.  Ry. 

1st 

4s 

1935 

PENNSYLVANIA  SYSTEM 


Pennsylvania  Railroad  . . Con.  5s  1919 

do  Con.  4s  1943 

do  Con.  3^4s  1945 

do  ; Con.  4s  1948 

Western  Penn.  Railroad  . Con.  4s  1928 

Southwest  Penn.  Railroad  . 1st  7s  1917 

Phil.  & Erie  R.R.  . . ,6s,  5s  & 4s  1920 
United  N.  J.  R.R.  & Ca.  Co.  Gen.  4s  1923 

do  Gen.  4s  1929 

do  Gen.  4s  1944 

do  Gen.  4s  1948 

do  Gen.  3^s  1951 

Cleve.& Pittsburgh  R.R.  Gen.  4P2S  & 3^s  1942 

do  3P2  s 1948 

do  y/2s  1950 

Allegheny  Valley  Ry.  . . Gen.  4s  1942 

j 4 

MISCELLANEOUS  NEW  ENGLAND 
RAILROADS 

New  London  Nortldn  R.  R.  Con.  4s  1940 

BURLINGTON  TRACTION  CO. 

Win.  & Bur.  Horse  R.  R.  . 1st  6s  1914 


► 


> 


« 


State  Banks. 


WISCONSIN. 


Municipal  Law  in  reel.  Other  matter  in  black. 
Railroad  Law  in  green.  Street  Railway  bonds  not 

a legal  investment. 


WISCONSIN 


Corrected  to  and  including  1911  Sess.  of  Leg. 

STATE  BANKS  (BANKS  OF  DISCOUNT  AND 
DEPOSIT). 

Chaps.  234  and  429,  Laws  of  1903,  as 
amended  by  Chap.  109,  Laws  of  1905,  and  as 
amended  Laws  of  1911. 

Sec.  4.  To  exercise,  by  its  directors,  duly  au- 
thorized officers,  or  agents,  all  such  powers  as 
shall  be  usual  in  carrying  on  the  business,  of 
banking;  by  buying,  discounting  and  negotiat- 
ing promissory  notes,  bonds,  drafts,  bills  of 
exchange,  foreign  and  domestic  and  other  evi- 
dences of  debt;  by  receiving  commercial  and 
savings  deposits  under  such  regulations  as  it 
may  establish;  by  buying  and  selling  coin  and 
bullion,  and  by  buying  and  selling  exchange, 
foreign  and  domestic;  issuing  letters  of 
credit,  and  by  loaning  money  on  personal  or 
real  security,  as  provided  hereinafter. 

Sec.  14.  A Bk.  may  purchase,  hold  and 
convey  real  estate  for  the  following  purposes 
only : 

1st.  Such  as  shall  be  necessary  for  the 
convenient  transaction  of  its  business,  in- 
cluding with  its  banking  offices  other  apart- 
ments to  rent  as  a source  of  income.  No  Bk. 
shall  invest  in  a banking  office,  including 
apartments  connected  therewith,  a sum  ex- 
ceeding 25%  of  its  capital  and  surplus;  pro- 
vided, that  this  limitation  shall  not  apply  to 
the  present  holdings  of  Bks.  now  doing  busi- 
ness. 

2d.  Such  as  shall  be  conveyed  to  it  in  sat- 
isfaction of  debts  previously  contracted  in 
the  course  of  its  business. 

3d.  Such  as  it  shall  purchase  at  sale  on 
judgments,  decrees,  or  Mtg.  foreclosures 


1 


WISCONSIN. 


State  Banks. 


under  securities  held  by  it,  but  a Bk.  shall 
not  bid  at  such  sale  a larger  amount  than 
is  necessary  to  satisfy  its  debts  and  costs. 

4th.  No  real  estate  acquired  in  the  cases 
contemplated  in  the  2d  and  3d  subdivs.  pre- 
ceding, shall  be  held  for  a longer  time  than 
5 yrs.,  except  an  extension  is  granted  by  the 
Com.  of  Bkg.  If  such  extension  be  not 
granted,  it  must  be  sold  at  a private  or  pub- 
lic sale  within  1 year  thereafter.  Nothing  in 
this  section  shall  be  construed  to  prevent 
a Bk.  from  loaning  moneys  upon  real  estate 
security  as  provided  by  law.  Real  estate  shall 
be  conveyed  under  the  corporate  seal  of  the 
Bk.,  and  the  hand  of  the  president  or  vice- 
president  and  cashier  or  assistant  cashier. 

Sec.  25.  Every  Bk.  shall  keep  on  hand  at 
all  times  at  least  15%  of  its  total  deposits,  of 
which  such  portion  as  the  board  of  directors 
may  determine,  may  be  on  deposit  in  Bks.  ap- 
proved by  the  Com.  of  Bkg.  as  reserve  Bks. ; 
except  in  the  case  of  Bks.  which  shall  be  ap- 
proved by  the  Com.  of  Bkg.  as  reserve  Bks., 
which  Bks.  shall  at  all  times  keep  on  hand 
at  least  25%  of  their  total  deposits  in  law- 
ful money  or  on  deposit  in  Bks.  subject  to 
the  approval  of  the  Com.  of  Bkg.,  as  re- 
serve Bks.  Cash  items  shall  not  be  consid- 
ered as  a part  of  the  reserve  of  any  Bk. 

Sec.  27.  The  total  liabilities  of  any  per- 
son, co-partnership  or  corporation,  to  any  Bk., 
for  money  borrowed,  including  in  liabilities 
of  the  co-partnership,  the  liabilities  of  the 
several  members  thereof,  except  special  part- 
ners, shall  at  no  time  exceed  30%  of  the 
amount  of  capital  and  surplus  of  such  Bk. ; 
but  the  discounting  of  bills  of  exchange 
drawn  in  good  faith  against  actually  exist- 
ing values,  and  the  discounting  of  commercial 
or  business  paper  actually  owned  by  the 
person  negotiating  the  same,  shall  not  be  con- 
sidered as  money  borrowed ; Provided,  that 
by  a 2/sr ds  vote  of  the  directors,  the  liabilities 
of  any  person,  co-partnership  or  corporation 
may  be  increased  to  a total  sum  not  exceed- 
ing 50%  of  the  capital  and  surplus  of  such 
Bk.  upon  approved  security. 


2 


State  Banks. 


WISCONSIN. 


Sec.  28.  No  Bk.  shall  be  the  holder  of  or 
purchaser  of  any  portion  of  its  capital  stock, 
unless  such  purchase  shall  be  necessary  to  pre- 
vent loss  upon  a debt  previously  contracted 
in  good  faith.  Stocks  so  purchased  shall  in 
no  case  be  held  by  the  Bk.  for  a longer  time 
than  6 mos.  if  the  stock  can  be  sold  for  the 
amount  of  the  claim  of  the  Bk.  against  the 
same,  and  it  must  be  sold  for  the  best  price 
obtainable  within  1 year,  or  it  shall  be  can- 
celed, and  shall  then  amount  to  a reduction 
of  the  capital  stock;  Provided,  that,  if  such 
reduction  shall  reduce  the  capital  stock  below 
the  minimum  required  by  law,  such  capital 
stock  shall  be  again  increased  to  the  amount 
required  by  law  as  provided  herein. 

No  Bk.  shall  loan  any  part  of  its  capital, 
surplus  or  deposits  on  the  capital  stock  of 
its  own  Bk.  as  collateral  security,  nor  on  the 
capital  stock  of  any  other  Bk.  as  collateral  se- 
curity, if  by  making  such  loan,  the  total  stock 
of  such  other  Bk.  held  by  such  loaning  Bk. 
as  collateral  security  will  exceed  in  the  ag- 
gregate 10%  of  the  capital  stock  of  such 
other  Bk. ; Provided,  that  no  loan  upon  the 
capital  stock  of  any  Bk.  shall  be  made  unless 
such  Bk.  has  been  in  existence  for  2 or  more 
yrs.  and  has  earned  and  paid  a dividend  upon 
its  capital  stock. 

Sec.  29.  It  shall  not  be  lawful  for  any  Bk. 
to  loan  to  any  of  its  officers,  directors,  clerks 
or  employees  any  of  the  funds  of  the  Bk. 
without  a responsible  endorser  or  sufficient 
collateral  security,  unless  the  same  shall  have 
been  authorized,  both  as  to  amount  and  se- 
curity, by  a resolution  of  the  board  of  di- 
rectors, to  be  recorded. 

Sec.  30.  No  Bk.  shall  lend  an  amount  ex- 
ceeding 50%  of  the  aggregate  of  its  capi- 
tal, surplus  and  deposits  upon  Mtgs.  or  any 
other  form  of  real  estate  security,  except 
when  authorized  as  to  amount,  security  and 
location  in  this  and  the  adjoining  states  by 
resolution  of  %rds  of  its  board  of  directors, 
properly  entered  upon  its  minutes. 


3 


WISCONSIN. 


Mutual  Savings  Banks. 


MUTUAL  SAVINGS  BANKS  (SAVINGS  SOCIE- 
TIES WITHOUT  CAPITAL  STOCK). 

Chap.  3 of 

Chap.  234,  Laws  of  1903. 

Sec.  10.  No  trustee  or  director  of  such 
Mutual  Sav.  Bk.  shall  be  a borrower,  or  surety 
for  a borrower,  of  any  of  its  funds  . . . 

Sec.  19.  It  shall  be  lawful  for  such  Mutual 
Sav.  Bk.  to  purchase,  hold  and  convey,  such 
real  estate  as  Bks.  are  authorized  by  the  law 
of  this  state  to  purchase,  hold  and  con- 
vey, except  that  such  Mutual  Sav.  Bk.  may 
purchase  or  build  a building  in  which  to 
carry  on  its  own  business,  but  shall  not  in- 
vest in  the  land  and  building  a sum  exceed- 
ing $10,000;  except  upon  the  consent  and  ap- 
proval of  the  Com.  of  Bkg. 

Sec.  20.  Every  such  Mutual  Sav.  Bk.  shall 
keep  on  hand  or  on  deposit  in  banks  ap- 
proved by  the  Com.  of  Bkg.  as  reserve  Bks., 
at  least  5%  of  its  total  deposits. 


Chap.  260,  Laws  of  1911. 

Sec.  1.  Any  Mutual  Sav.  Bk.  organized 
hereunder  may  employ  not  exceeding  ^ of 
its  deposits  in  the  purchase  of  bonds  of  the 
U.  S.  or  of  the  states  of  the  U.  S.  or  of 
the  authorized  bonds  of  any  incorporated 
city,  village,  town  or  county,  or  Sch.  Dist. 
in  the  aforesaid  states  of  the  U.  S.,  or  of 
1st  Mtg.  bonds  of  any  R.  R.  Co.,  which  has 
paid  annual  dividends  of  not  less  than  4% 
regularly  on  its  entire  capital  stock  for  a 
period  of  at  least  5 yrs.  next  preceding  the 
investment,  and  in  the  consolidated  Mtg.  bonds 
of  any  such  Co.  issued  to  retire  the  entire 
bonded  debt  of  such  Co,  All  other  loans 
shall  be  secured  by  Mtg.  on  unincumbered 
real  estate  lying  and  being  in  the  state  of 
Wis.  and  states  immediately  adjoining  the 
state  of  Wis.,  to-wit : Mich.,  111.,  Iowa  and 
Minn.  No  Mutual  Sav.  Bk.  shall  invest  any 
part  of  its  deposits  in  the  stock  of  any  cor- 
poration nor  loan  on,  nor  invest  in  any  Mtg. 
on  real  estate,  except  such  real  estate  as  lies 


4 


Trust  Companies,  Etc. 


WISCONSIN. 


in  the  state  of  Wis.,  and  states  immediately 
adjoining,  to-wit : Mich.,  111.,  Iowa  and  Minn. 
No  loan  shall  be  made  upon  real  estate  to 
an  amount  exceeding  60%  of  the  value 
thereof  as  determined  upon  by  not  less  than 
a majority  of  the  members  of  the  Finance 
Com.  who  shall  duly  certify  to  the  value 
of  the  premises  to  be  mortgaged,  accord- 
ing to  the  best  of  their  judgment,  and  such 
report  shall  be  filed  and  preserved  with  the 
records  of  the  corporation. 

No  such  Mutual  Sav.  Bk.  shall  loan  any 
money  upon  any  obligation  on  which  only 
i person  or  firm  shall  be  holden,  unless  the 
same  be  secured  by  collateral  in  which  the 
Bk.  might  invest  its  funds  or  on  which  it 
might  loan  its  money  to  the  extent  author- 
ized in  the  preceding  paragraph. 


TRUST,  ANNUITY,  GUARANTY,  SAFE  DEPOSIT 
AND  SECURITY  COMPANIES. 

(Statutes  of  1898,  as  amended  by  Chap.  504, 
Laws  of  1905.) 

Sec.  1791^.  As  soon  as  possible  and  not 
later  than  6 mos.  after  any  such  Co.  has  com- 
menced business,  it  shall  deposit  with  the 
state  treasurer  not  less  than  50%  of  the 
amount  of  its  capital  stock  nor  more  than 
$100,000;  such  deposit  to  be  in  cash,  bonds, 
or  Mtgs.,  or  notes  and  Mtgs.  on  unincum- 
bered real  estate  within  this  state  worth 
double  the  amount  secured  thereby,  or  pub- 
lic stocks  and  bonds  of  the  U.  S.  or  of  any 
state  of  the  U.  S.  that  has  not  defaulted  on 
its  principal  or  interest  within  10  yrs.,  or 
of  any  county,  town,  village  or  city  in  this 
state,  and  upon  all  which  bonds  and  other 
securities  there  shall  have  been  no  default  in 
the  payment  of  interest  or  principal  for  a 
longer  period  than  30  days;  which  cash, 
bonds,  Mtgs.,  or  notes  and  Mtgs.  or  pub- 
lic stocks  or  bonds  shall  be  held  by  the 
state  treasurer  in  trust  as  security  for  the 
depositors  and  creditors  of  said  corporation 


5 


WISCONSIN. 


and  for  the  faithful  execution  of  any  trust 
which  may  be  lawfully  imposed  upon  and 
accepted  by  it;  Provided,  that  the  securities 
comprising  such  deposit  shall  first  be  sub- 
mitted to  the  Com.  of  Bkg.  for  approval. 

Sec.  1791#.  . . . Such  corporation  may 
loan  money  upon  real  estate  and  collateral 
security,  execute  and  issue  its  notes  and  de- 
bentures, payable  at  a future  date,  and 
pledge  its  Mtgs.  on  real  estate  and  other  se- 
curities as  security  therefor;  but  nothing 
herein  contained  shall  be  construed  as  giv- 
ing it  the  right  to  issue  bills  to  circulate  as 
money,  buy  or  sell  Bk.  exchange  or  do  a bank- 
ing business. 

Sec.  1791  h.  It  shall  be  lawful  for  any  such 
corporation  to  lease,  purchase,  hold  and 
convey  such  land  as  may  be  necessary  to 
carry  on  its  business  and  execute  any 
trust  committed  to  it,  as  well  as  such  real 
or  personal  estate  as  it  may  deem  necessary 
to  acquire  in  the  enforcement  or  settlement 
of  any  claims  or  demands  arising  out  of  its 
business  transactions.  . . . The  directors 
thereof  shall  invent  so  much  of  the  capital 
as  is  required  to  be  deposited  in  the  state 
treasury  and  other  moneys  received  by  such  cor- 
poration in  trust  in  bonds  secured  by  Mtgs.  or 
notes  and  Mtgs.  on  unincumbered  real  estate 
within  this  state  worth  double  the  amount 
secured  thereby,  or  in  public  stocks  and  bonds 
of  the  U.  S.,  or  any  state  of  the  U.  S.  that 
has  not  defaulted  on  its  principal  or  interest 
within  10  yrs.,  or  of  any  county,  town,  vil- 
lage or  city  in  this  state,  or  in  any  other 
such  state,  duly  authorized  to  be.  issued,  or 
in  such  real  or  personal  securities  as  they 
may  deem  proper. 


a 


$ 


C V 

Trust  Companies,  Etc. 


/ 


6 


